Consumer Spending Contributed to Most of Q3 Growth

• The economy grew 4.9% annualized in Q3 as consumer demand for goods rebounded from the previous quarter and the demand for services was the hottest since 2021.
• Investment in equipment shrank as the high cost of capital put a strain on businesses.
• Rebuilding of inventories, a highly volatile component of the economy, added 1.3 percentage points to headline growth and will not likely add to growth in the coming quarter given the nature of inventory management.

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