U.S. economy expands at a surprisingly strong 4.3% annual rate last quarter, though inflation remains stubbornly high | PBS News

WASHINGTON (AP) - The U.S. economy economy expanded at a surprisingly strong 4.3% annual rate in the third quarter as consumer spending, exports and government spending all grew. READ MORE: The economy is giving mixed signals. Here's what experts say they mean U.S. 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. Analysts surveyed by the data firm FactSet forecast growth of 3% in the period. However, inflation remains higher than the Federal Reserve 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. Excluding volatile food and energy prices, so-called core PCE inflation was 2.9%, up from 2.6% in the April-June quarter. Consumer spending, which accounts for about 70% of U.S. economic activity, rose to a 3.5% annual pace last quarter, up from 2.5% in the April-June period. A free press is a cornerstone of a healthy democracy. Support trusted journalism and civil dialogue. Donate now

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