US Economic Growth Is Surprisingly Robust

The US economy expanded at a surprisingly strong 4.3% annual rate in the third quarter as consumer spending, exports, and government spending all grew, per the AP. That's way higher than the 3.2% expected by economists polled in the Wall Street Journal.

• US gross domestic product from July through September—the economy's total output of goods and services—rose from its 3.8% growth rate in the April-June quarter, the Commerce Department said Tuesday.

• Despite the good news, stock futures fell in the wake of the report, notes CNBC. Dow futures were down nearly 100 points afterward, apparently because the stats may make the Federal Reserve more conservative on rate cuts.
• Consumer spending, which accounts for about 70% of US economic activity, rose to a 3.5% annual pace last quarter, up from 2.5% in the April-June period.
• Still, inflation remains higher than the Fed would like. The Fed's favored inflation gauge—called the personal consumption expenditures index, or PCE—climbed to a 2.8% annual pace last quarter, up from 2.1% in the second quarter.