US economic growth powers up 5.2% in third quarter

The news: US third-quarter GDP growth hit 5.2% YoY, an increase from the earlier 4.9% estimate.

The numbers: Current‑dollar GDP increased 8.9% at an annual rate (USD581.5 billion), in Q3 to USD27.64 trillion, an upward revision of USD20.9 billion from the previous estimate.

The context: The quarter’s rapid growth was the fastest increase the US economy has seen since Q4 2021, raising questions around whether the Fed may be compelled to increase rates further. Consumer spending was lower than expected at 3.6%, while business spending on building and inventories added a strong boost to the quarter.