Surge in U.S. Economy Powered by Robust Consumer Spending

The U.S. economy's growth in the third quarter was higher than initially reported, reaching a 3.1% annualized rate. Driven by consumer spending, the revised figure is a positive sign amid Federal Reserve's efforts to curb inflation. Concerns about future inflation persist due to proposed policies.

In a significant upward revision, the U.S. economy grew at a 3.1% annualized rate in the third quarter, according to the Bureau of Economic Analysis. This growth was primarily fueled by increased consumer spending, marking an adjustment from the previously reported 2.8% rate.

Economists had not anticipated the revision. Analysts attribute the upgrade to better-than-expected consumer spending and export growth, which compensated for other economic pressures. Still, concerns regarding inflationary pressures persist, notably with potential policy changes from the Trump administration.

The Federal Reserve's latest decision to implement a third consecutive rate cut, while slowing the pace of future cuts, underscores the resilience of the economy. Despite fears of inflation, Fed Chair Jerome Powell expressed optimism about the economic trajectory, aiming to maintain growth momentum.

(With inputs from agencies.)