US economy grows at brisk 3.4% pace in third quarter on strong consumer spending and AI investment
A former educator, Lucas holds a degree in Education from Nazareth College and has transitioned to journalism, focusing on education reporting for the Rochester Beacon. He aims to shed light on both the challenges and triumphs within local schools.
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WASHINGTON (AP) — The U.S. economy grew at a healthy 3.4% annual pace from July through September, accelerating from the second quarter on strong consumer spending and investment in artificial intelligence. The expansion in third-quarter gross domestic product – the nation’s output of goods and services – was faster than the 2.2% growth registered from April through June, the Commerce Department said Thursday. Consumer spending rose at a brisk 3.8% clip in the third quarter, and business investment was up sharply, reflecting the AI boom. The American economy – by far, the world’s biggest – has proven resilient in the face of higher energy prices caused by the fighting with Iran. Economists had expected GDP to grow 3% in the third quarter, according to a survey of forecasters by the data firm FactSet. U.S. growth has been lifted by an AI investment boom. Business investment, excluding housing, was up 12.7% in the third quarter. Investment in information processing equipment surged 37.4%