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US economy grows in Q3

October 29, 2022 00:00:00

The US economy rebounded in the third quarter, expanding for the first time this year in welcome news for president Joe Biden days ahead of midterm elections, government data showed Thursday, reports AFP.

Economic issues have become a flashpoint in the United States, with decades-high inflation weighing on growth and squeezing households.

Fears of a downturn have intensified in the world's biggest economy after two quarters of negative growth, commonly viewed as a strong signal that a recession is underway - a trend that would have global consequences and domestic political costs.

But gross domestic product rose at an annual rate of 2.6 per cent in the July to September period, according to the latest Commerce Department data.

Economic performance was helped by strong trade, even as weaker consumer spending on goods casts a pall on growth as higher prices bite. Industrial supplies and materials, notably petroleum and products, kept exports strong.

But in consumer spending, an increase in services led by health care and other areas was 'partly offset' by a drop in products like motor vehicles and parts, along with food and beverages, data showed. The US economy shrank 0.6 per cent in the second quarter, according to revised numbers.

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