WASHINGTON (AP) — The U.S. economy grew at a strong rate of 2.8% from July to September. This growth happened because people are still spending money, even with high interest rates.
The Commerce Department reported that the economy’s total output of goods and services slowed a little from 3% in the second quarter. However, this is still good news as people look at the economy during the presidential elections.
Consumer spending, which makes up about 70% of the economy, increased to 3.7%, up from 2.8%. Exports also grew by 8.9%.
But, business investment went down. Spending on buildings like houses and offices dropped, but equipment spending went up.
Inflation is also calming down. The Federal Reserve’s favorite measure of inflation rose only 1.5% last quarter, down from 2.5%. This is the lowest rate in more than four years.
President Joe Biden said the economy has improved a lot since he took office. Many people feel positive about spending, as shown by a recent rise in consumer confidence.
Vocabulary List:
- Economy /ɪˈkɒnəmi/ (noun): The system of production and distribution and consumption.
- Consumer /kənˈsjuːmə/ (noun): A person who purchases goods and services for personal use.
- Inflation /ɪnˈfleɪʃən/ (noun): Increase in prices and fall in the purchasing value of money.
- Investment /ɪnˈvɛstmənt/ (noun): The action or process of investing money for profit.
- Exports /ˈɛkspɔːts/ (noun): Goods and services sold to another country.
- Confidence /ˈkɒnfɪdəns/ (noun): The feeling or belief that one can rely on someone or something.
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