The US economy grew well above trend in Q3 2023, with a 4.9% increase in Gross Domestic Product (GDP), marking the fastest growth in nearly two years. The primary factor driving this growth was a 4% rise in consumer spending as a healthy US job market continues to support strong household spending.
US Treasury rates increased after substantial swings this week, and the curve became significantly less inverted as economic data continued to reflect a resilient consumer and labor market strength. Retail Sales rose 0.7% in September after an upward revision to 0.8% in August, exceeding the consensus forecast. Control Group Sales, which are used to calculate gross domestic product and exclude food services, auto dealers, building materials stores and gasoline stations, rebounded 0.6% and reflected broad increases across sectors.
Recent economic data continues to suggest positive but below trend growth this year. Labor markets remain solid, and the U.S. consumer has demonstrated resiliency.
