The actual GDP for the U.S. in Q3 was slightly revised up to a quarter-on-quarter final value of 4.4%, marking the fastest growth rate in two years, while core PCE inflation remained at 2.9%

Thanks to strong exports and a reduction in the drag from inventory on growth, the U.S. economy's growth rate for the third quarter has been slightly revised upward.

On Thursday, the U.S. Bureau of Economic Analysis reported that the annualized quarter-on-quarter real GDP for the third quarter was 4.4%, slightly above market expectations and the previous revision of 4.3%, marking the fastest growth rate in two years.

Meanwhile, consumer spending grew at an annualized rate of 3.5% in the last quarter, with spending on services recording the fastest growth in three years, and spending on goods also accelerating compared to the previous quarter. The final value of the core Personal Consumption Expenditures (PCE) price index for the third quarter was 2.9%, in line with expectations, indicating that inflationary pressures have not shown significant signs of heating up.

After the data was released, the U.S. dollar index fluctuated slightly, currently reported at 98.65. U.S. stock futures showed little short-term volatility, with the Nasdaq 100 index futures maintaining an increase of around 0.9%. Spot gold also showed little short-term fluctuation, currently reported at $4,822.39 per ounce.

Strong Economic Growth and Persistent Inflation, Fed May Hold Steady Next Week

This is one of the strongest consecutive two-quarter growths since 2021. Companies have slowed their pace of goods imports after rushing to import ahead of the tariffs introduced by Trump at the beginning of the year. Despite the erratic trade policies, consumer and business spending remain resilient.

Against the backdrop of strong economic growth, a relatively robust job market, and inflation still above the Fed's target, policymakers are expected to keep interest rates unchanged at next week's meeting.

The GDP report also showed that the Fed's preferred inflation measure—the Personal Consumption Expenditures (PCE) price index excluding food and energy—rose by 2.9% on an annualized basis in the third quarter, with no revisions. The BEA will release price data for October and November later that day, along with personal spending and income data.

As the main engine of economic growth, consumer spending grew at an annualized rate of 3.5% in the last quarter. This reflects that spending on services recorded the fastest growth in three years, while spending on goods also accelerated compared to the previous quarter