Q3 GDP: The US economy continues to clip along at a solid pace

Wells Fargo Research Team Wells Fargo

Summary

Real GDP grew a solid annualized rate of 2.8% in Q3-2024 relative to the previous quarter. On a year-ago basis, output was up 2.7% in the third quarter, stronger than the 2.4% per annum growth rate that was registered during the last economic expansion in 2010-2019.

Consumer spending once again stole the show. Overall spending remained solid in the third quarter, with real personal consumption expenditures (PCE) advancing at a 3.7% annualized rate.

Investment spending was also strong in the third quarter, with real business spending on equipment up more than 11%. That said, spending on intellectual property products was essentially flat, while structures (i.e., non-residential construction) posted a modest contraction.

We look for the U.S. economy to continue to expand in coming quarters, although not quite as strongly as it has recently. Policy changes in the wake of next week's election could potentially lead to modifications of our forecast. We may make some changes to our forecast once we know the results of the election. Our Annual Economic Outlookwebinar is scheduled for Thursday November 21.

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Wells Fargo Research Team

Wells Fargo

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