The U.S. economy maintained its upward trend in the third quarter of 2024, growing at an annual rate of 2.8%, according to the Bureau of Economic Analysis (BEA).
This growth follows a stronger-than-expected 3.0% rate in the second quarter. Although slightly below economists’ 3.0% forecast, the third-quarter results show the economy’s continued resilience amid ongoing challenges.
Earlier in the year, the economy saw more modest growth, with a 1.4% increase in the first quarter. However, the second and third quarters have shown a notable improvement.
Factors Contributing to Growth
Several factors likely contributed to the continued economic growth:
- Federal Reserve Rate Cut: In September, the Federal Reserve lowered its benchmark interest rate by 0.50% to stimulate economic activity.
- Easing Inflation: Inflation has been gradually declining, reaching 2.5% in August. This provides some relief to consumers and businesses.
- Strong Job Market: The unemployment rate fell to 4.1% in September, with the addition of 254,000 nonfarm payroll jobs.
With the presidential election just days away, the economy remains a primary concern for voters. A recent Gallup poll found that 52% of voters view the candidates’ economic positions as “extremely important.”
The BEA is set to release its second estimate for third-quarter GDP on November 27, offering additional insights into the economy’s performance.
