ALBAWABA – The United States (US) Commerce Department’s report on Wednesday showed the US economy growing in the third quarter, as the Eurozone's second-largest economy shrank, news agencies reported Thursday.
The US economy grew by 5.2 percent on annual basis in the third quarter, revised up from 4.9 percent, the Commerce Department's Bureau of Economic Analysis (BEA) said.
This is the fastest pace of expansion since the fourth quarter of 2021, as reported by Reuters.
Private inventory investment was higher than estimated as wholesalers amassed more machinery equipment, adding 1.40 percent to GDP growth, instead of the 1.32 percent, estimated last month.
However, growth in consumer spending, which accounts for more than two-thirds of U.S. economic activity, was reportedly lowered to a still-solid 3.6 percent, according to Reuters. Down from the previously estimated 4% growth rate.
Drops in consumer spending are reportedly due to declines in financial services and insurance. As well as used light trucks, likely the result of shortages caused by the recently ended United Auto Workers’ strike.
Inflation in France eased in November as the economy shrank, unlike the US economy, set for a soft landing - Shutterstock
Meanwhile, across the Pacific, the Eurozone's second-largest economy, France, shrank slightly in the third quarter, according to official data, reported by Agence France-Presse (AFP) Thursday.
Inflation in France eased in November as the economy shrank, while the US economy, which is set for a soft landing, according to Bloomberg, is experiencing growth as inflation cools.
France’s Gross domestic product (GDP) retreated by 0.1 percent in July-September, statistics authority INSEE said, close to a flatline following a strong second-quarter expansion.
Household consumption reportedly picked up over the three months, but was counterbalanced by slowing investments and falling exports.
Thursday's figures were a revision of an earlier estimate that showed the economy expanding slightly in the third quarter, according to AFP.
Monthly inflation data showed that year-on-year price growth in France slowed to 3.4 percent in November, as inflation fell for services, energy and consumer goods, including food.
