Overview
- Real GDP expanded at a 4.3% annualized rate in the third quarter, the fastest in two years, with a notable boost from services spending.
- Spending strength was concentrated among higher-income households supported by market and housing gains, while many lower- and middle-income families leaned on savings and credit.
- The unemployment rate climbed to 4.6% as hiring slowed and companies learned to do more with fewer workers, including through AI-driven efficiencies.
- Real disposable income was essentially flat in the quarter, and inflation near 2.7% left essentials like electricity, natural gas, beef, car repair and coffee significantly costlier.
- Corporate profits surged by roughly $166 billion even as investment weakened, leading some economists to caution the growth spurt could be a temporary sugar high.