The trend: The US economy is in good shape as retailers prepare for the critical last two months of the year.
- Q3 GDP growth exceeded expectations. Inflation-adjusted gross domestic product grew 2.8% year over year (YoY), a slight slowdown from 3.0% in Q2, per the US Commerce Department. That outpaced the 2.6% gain that economists surveyed by FactSet had expected.
- Consumer spending grew at the fastest rate since Q1 2023. Consumer spending grew 3.7% YoY in Q3, as shoppers splurged on a range of goods, including autos and household furnishings.