Consumer Behavior

Consumer spending drives Q3 economic growth

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October 26, 2023

Consumer shopping and spending played a big role in accelerating economic growth in Q3.

The gross domestic product boasted a 4.9% rate this summer, according to a New York Times report.

Additional factors included a strong job market and dipping inflation.

"There's been an enormous increase in wealth since Covid," Yelena Shulyatyeva, senior economist for the bank BNP Paribas, citing Fed data that showed median net worth climbed 37% from 2019 to 2022, told the Times. "People still take not just one vacation, not just two, but three and four."

Yet the boon may not last, according to economists who cited savings depletion and student loan payments starting up again.