US Economy May Have Found Its 'Soft Landing' As Economy Grew 2.8% Last Quarter

Fears about a recession are all but gone after more strong economic numbers were released on Wednesday.

The real gross domestic product (GDP) increased at an annual rate of 2.8 percent in the third quarter of 2024, according to the "advance" estimate released by the U.S. Bureau of Economic Analysis.

It was down from 3 percent in the second quarter but indicates the economy is still enjoying strength.

The figures were credited to increases in consumer spending, exports and federal government spending.

The increase in consumer spending reflected increases in both goods and services.

Within goods, the leading contributors were prescription drugs and motor vehicles and parts.

Within services, the leading contributors were health care, food services and accommodations.

The increase in federal government spending was led by defense spending.

The report found inflation was 1.8 in the third quarter compared with an increase of 2.4 percent in the second quarter.

Personal income was up along with disposable income, according to the findings.

Personal savings dropped in the quarter. The personal saving rate was 4.8 percent in the third quarter compared with 5.2 percent in the second quarter.

A more complete report on the data will be released on Nov. 27 and could bring changes to the numbers.