- Turkish govt defends tax plan to fund defence industry
- Oil prices tumble on easing Middle East fears
- Eidevall quits as Arsenal Women head coach
- US, Philippines launch war games after China's Taiwan drills, ship collision
- Swedish prosecutor confirms 'rape' probe without naming Mbappe
- England dismiss Ayub but Pakistan reach 173-3 at tea in second Test
- Israel vows to put 'national interest' first in response to Iran attack
- Oil prices hit by easing Middle East fears, most Asian markets rise
- Mbappe-PSG salary row faces hearing as France captain cited in 'rape' report
- K-pop star tells South Korea lawmakers of workplace bullying
- Ex-Wallabies captain Elsom denies wrongdoing after arrest warrant
- Pakistan 79-2 at lunch in second England Test after Leach strikes
- Hopes pinned on peace across Taiwan Strait after drills
- Valencia fans leave Singapore with 'stern warning' after protest
- Falling sales cause sour grapes for iconic Portugal wine
- Belgian pathologist and literary star gives 'voice to the dead'
- Ethiopia's 'korale' recyclers turn waste into money
- Italy row, AI in focus at world's biggest book fair
- US, Philippines launch war games a day after China's Taiwan drills
- Scotland lock Gray signs for Japan's Toyota
- Allen and Bills foil Rodgers, outlast Jets 23-20
- North Korea blows up roads connecting it to the South
- East Timor fights new battles 25 years after independence vote
- Japan election campaigns kick off for Oct 27 vote
- Home runs propel Mets, Yankees to MLB playoff victories
- Taiwan detects record 153 Chinese military aircraft after drills
- Oil prices drop on easing fears over Middle East, most markets rise
- Reoxygenating oceans: startups lead the way in Baltic Sea
- North Korea's Kim holds security meeting over drone flights
- Cars, chlamydia threaten Australian koalas
- Small town India's DIY film industry comes to London
- Harris slams Trump over military threat to 'enemy from within'
- Can biodiversity credits unlock billions for nature?
- Texas poised to execute autistic man for 'shaken baby' death
- King Charles III heads to Australia and Commonwealth meeting
- In the Colombian Pacific, fighting to save sharks
- Argentina's Matera banned for Italy Test after red card
- Vientos grand slam propels Mets in series-tying win over Dodgers
- Supporters of ex-Bolivia leader Morales block roads over possible arrest
- Germany into Nations League quarters, France and Italy win
- Nagelsmann lauds 'supercharged' Germany's 'best half of the year'
- 'Pandas are coming': Two new bears depart China for US capital
- Dodgers pitcher Kershaw plans to return for 2025
- Mbappe 'investigated for rape' in Sweden: report
- Revived Italy sweep past Israel in Nations League amid high security
- Trudeau slams India as tensions soar over Sikh separatist's murder
- Harris courts Black voters as Trump makes inroads
- Wall Street stocks hit fresh records as oil prices slide
- Nigerian team return home after boycotting AFCON qualifier in Libya
- Nigeria refuse to play in Libya as Algeria, Cameroon qualify
US economy grows at fastest rate in nearly two years
The US economy heated up in the third quarter, government data showed on Thursday, as a resilient job market helped boost consumer spending, holding off the prospect of a recession.
Gross domestic product growth came in at an annual rate of 4.9 percent for the July to September period, the quickest pace since late-2021, according to Commerce Department figures.
Analysts have raised fears of a downturn as the US central bank started lifting interest rates rapidly last year to fight inflation, but the world's biggest economy has so far defied these predictions.
A key factor is the strong labor market, which has provided healthy wage growth, allowing consumers to keep spending even as they draw down on pandemic-era savings.
The latest GDP figure is a significant bump from the second quarter's 2.1 percent growth and much higher than the 4.0 percent figure that analysts expected.
It also comes as President Joe Biden works to bolster sentiment on his handling of the economy as he seeks reelection in 2024.
The pick up reflects "accelerations in consumer spending, private inventory investment, and federal government spending" among other factors, said the Commerce Department.
Biden has lauded low US unemployment, slowing inflation and continued growth, citing an economic agenda he dubs "Bidenomics."
But polls have indicated that voters remain skeptical over his management, adding to challenges as he seeks another term in the White House.
- Unlikely sustained –
For now, a robust growth figure adds to hope that the country can bring down inflation without triggering a recession.
But if the trend persists, it could lead policymakers to consider further interest rate hikes to rein in price increases in a sustainable way.
"The US economy continued to show remarkable resilience over the summer with surprisingly robust job growth and an unexpected consumer spending spree," said Gregory Daco, chief economist at EY.
The latest Commerce Department figures show that consumer spending rose 4.0 percent in the latest quarter.
Daco told AFP: "While these signs of economic strength will fuel speculations that the economy is reaccelerating, we do not expect such strong momentum will be sustained."
Nationwide chief economist Kathy Bostjancic said she expects that consumers are spending the "last portion of pandemic-related savings," and said she expects growth will slow in the fourth quarter.
Bostjancic told AFP that the Fed will be "uncomfortable" with the idea of a strong economy, increasing the need for a further hike as it battles sticky inflation.
But high bond yields are driving rates for the consumer sharply up as well, doing some of the Fed's work and giving the central bank room to hold off a further hike for now, she said.
Y.Nakamura--AMWN