U.S. Economy's Surprising Surge in Third Quarter

The U.S. economy experienced unexpected growth in the third quarter, driven by increased consumer spending and business investment. Revised GDP figures show a 4.4% annualized growth, surpassing predictions. This growth is marked by a K-shaped pattern, benefiting higher-income households and large corporations amidst challenging conditions for smaller businesses.

The U.S. economy showed resilience in the third quarter, with a faster-than-expected growth rate, according to the latest figures from the Commerce Department's Bureau of Economic Analysis. Revised data indicates that the gross domestic product (GDP) grew at a 4.4% annual rate, surpassing the initially forecasted 4.3%.

Key factors contributing to this economic upswing included increased exports and business investments. Consumer spending, accounting for the majority of U.S. economic activity, grew at a 3.5% rate, while the trade deficit narrowed, further bolstering GDP growth.

However, the data highlights a K-shaped recovery theme, with affluent households and large corporations benefiting considerably, in part due to policy impacts like tariffs. In contrast, small businesses and lower-income groups face rising challenges amid limited purchasing power and shrinking labor pools.

(With inputs from agencies.)