The U.S. economy expanded more rapidly than initially reported in the third quarter, with the annualised growth rate revised upward to 3.1%, according to data from the Commerce Department's Bureau of Economic Analysis released on Thursday (Friday AEDT).
This marks an increase from the previously reported 2.8% growth rate and reflects stronger consumer spending and export performance.
The upward revision underscores robust domestic demand, particularly in consumer spending, which rose at a 3.7% pace, the fastest in 18 months. This was an improvement from the earlier estimate of 3.5%.
Business spending on equipment and intellectual property also contributed to the upgraded figure, although a steeper decline was recorded in non-residential structure investments.
The U.S. Federal Reserve, which recently implemented its third consecutive rate cut, has emphasised the economy's resilience despite persistent inflationary pressures.
Fed Chair Jerome Powell remarked: "It’s pretty clear we’ve avoided a recession... The U.S. economy has just been remarkable."
Meanwhile, labour market resilience continues to support economic expansion. Initial claims for unemployment benefits fell sharply last week, dropping by 22,000 to 220,000, further suggesting a stable employment environment.
However, concerns remain over potential headwinds in 2025, with heightened policy uncertainty linked to President-elect Donald Trump’s proposed economic measures, including tariffs and tax reforms, which economists warn could be inflationary.