The U.S. economy put on quite the display of resilience. It grew by an impressive annual rate of 4.3% in the third quarter of the fiscal year. That constitutes a considerable jump from the 3.8% growth rate in the fourth quarter of 2021. All of this data paints a more sobering picture as we head into the end of 2023. In particular, it points to how trade and immigration policy drives this expansion, as well as how changes in government spending contribute.
Consumer spending largely fueled this economic growth. It bounced back at an annual rate of 3.5% in the third quarter, up from 2.5% in the second quarter. This jump was largely driven by increased spending on health care services. This change illustrates just how much consumers’ habits and priorities have changed in recent years.
These encouraging growth numbers come as fears continue to mount over a cooling job market and recent slowing trends. This mixed economic picture is compounded by ongoing frustrations regarding persistent inflation that continues to affect purchasing power for many Americans.
Trade dynamics played a big role too. Exports blew past expectations, rising 7.4% in the third quarter, an abrupt turnaround after a steep drop-off in prior quarters. With that said, imports still fell further. This dramatic decline was primarily a result of President Donald Trump’s new tariffs on incoming shipments which he announced this past spring. These changes are just the tip of the iceberg, ushering in a new era of trade flows that could have lasting impacts on the U.S. economy.
The recent economic data collection was marred by delays due to the government shutdown. This brought up huge questions about whether the figures that were released could be trusted. The overall outcomes suggest that in the face of a great many hurdles, the U.S. economy is indeed delivering a picture of strong growth and resilience.