The US economy was much stronger than expected in the third quarter

By Elisabeth Buchwald, CNN

(CNN) — An initial reading of third-quarter gross domestic product showed the US economy expanded at an inflation-adjusted annualized rate of 4.3%, a far faster pace than the 3.8% recorded in the second quarter, according to Commerce Department data released Tuesday. That’s the fastest growth rate in two years.

An acceleration in consumer spending, up 3.5% from 2.5% in the second quarter, and exports, up 8.8% from -1.8% in the second quarter, were the main contributors to the third-quarter GDP reading.

President Donald Trump said Tuesday the report was a reflection of his sweeping tariffs, which he increased substantially during the third quarter. However, a pending Supreme Court case could nullify many of the tariffs he’s enacted and potentially result in large refunds to importers.

“The TARIFFS are responsible for the GREAT USA Economic Numbers JUST ANNOUNCED…AND THEY WILL ONLY GET BETTER!” Trump wrote on his social media platform. “Also, NO INFLATION & GREAT NATIONAL SECURITY. Pray for the U.S. Supreme Court!!!”

While Trump has frequently pushed for the Federal Reserve to lower rates in order to boost the economy, Tuesday’s report likely gives the central bank even less reason to cut rates when it reconvenes next month.

This is a developing story and will be updated.

The-CNN-Wire
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