The U.S. economy is beating the odds despite inflation and growing recession concerns.
According to the Commerce Department’s GDP report, the economy surpassed expectations, growing 3.2% from July to September of this year. Prior to the report, experts predicted that the quarter would see a 2.9% growth
This welcomed report follows consecutive losses during the first two quarters of the year.
While a recession is still likely due to interest rate hikes, third-quarter growth has instilled a sense of optimism that the downturn may not be as severe as predicted.
“Despite a rapid increase in interest rates, the economy is growing and importantly, households are still spending,” said Rubeela Farooqi, chief U.S. economist at High Frequency Economics. “However, looking ahead, in 2023, we expect a slower growth trajectory.”