US Economy Surges 4.4% in Q3, Fastest in Two Years Driven by Consumer Spending

• The US economy grew at an annual pace of 4.4% in the third quarter (July-September), marking its fastest growth in two years.
• Strong consumer spending, accounting for 70% of US GDP, was the primary driver, increasing by 3.5%.
• Exports surged and imports dropped, further contributing to the robust economic expansion.
• Business investment, excluding homebuilding, rose by 3.2%, partly due to investments in artificial intelligence.
• Despite strong growth, many Americans are dissatisfied with the economy due to high living costs, reflecting a 'K-shaped economy' where wealthier individuals thrive while lower-income households struggle.

Why It Matters: The US economy experienced its fastest growth in two years, driven by consumer spending and AI investments.