The economy grew at a 3.1% annual rate in the third quarter of this year, adjusted for inflation, just over the 3% rate the quarter before, the Bureau of Economic Analysis reported Thursday morning in its final estimate of gross domestic product.
GDP growth has remained relatively robust this year despite headwinds such as high interest rates from the Federal Reserve.
The economy expanded at a 3% rate in the second quarter and just 1.4% in the first. This is the third of three estimates for GDP that the BEA makes and the BE revised its estimate up by three-tenths of a percentage point.
Consumer spending helped push up the headline GDP rate. Growth was also driven in part by government spending. Both of those propped up GDP as residential investment fell amid a flagging housing market.
While GDP has been strong, other aspects of economic performance have been shakier. Despite declines in inflation, price growth is still clocking in above the 2% level that the Fed considers healthy.
The most often cited inflation gauge for the public is the consumer price index. CPI inflation hit its lowest point since inflation started picking up in September, but has since ticked up a bit to 2.7% — showing that inflation is proving more stubborn than expected.
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The labor market has also weakened a bit, although is still keeping its head above water.
The economy added 227,000 jobs in November, and the unemployment rate rose one-tenth of a percentage point to 4.2%, the Bureau of Labor Statistics reported earlier this month. But just 36,000 jobs were added in October, a concerning reading for the labor market.
