US economy resilient despite rising prices
The US economy has held up better than expected, as shoppers keep spending despite rising prices and higher borrowing costs.
The economy expanded at an annual rate of 2.6% in the three months ended in September, returning to growth after two quarters of decline.
The better-than-expected figure is one of the last major economic readings before US midterm elections next month.
Many analysts say the US is still on track for a slowdown next year.
In the most recent quarter, a surge in exports helped drive the growth, the Commerce Department said.
But analysts said that is unlikely to last as a strong dollar and weak global economy make it harder for US companies to sell abroad.
“There’s more to it than just the headline number,” said Andrew Patterson, international economist for investment company Vanguard.
The figures come as much of the public already believes the US economy has entered an economic downturn or recession.
President Joe Biden cheered the figures on Thursday, calling them “further evidence that our economic recovery is continuing to power forward”.
The White House has made the case that a slowdown, after the surge in activity as the economy reopened from the pandemic, is part of a healthy economic transition.
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