MCLEAN, Virginia - Oct. 30, 2024 - Today the U.S. Bureau of Economic Analysis released their first estimate of GDP for the third quarter of 2024 .
According to the first estimate, GDP grew 2.8% at an annualized rate. "The GDP print today shows that the economy continued to grow near trend despite high interest rates ," said Christopher Chidzik, principal economist of AMT. "We can see the strength of the sectors dependent on the metalworking machinery that AMT members build and sell, with capital goods (excluding automotive) driving both imports and exports in Q3.
“Personal consumption expenditure continued its meteoric post-COVID climb, rising at 8.1%, exceeding growth in the general economy. Similarly, business investment in equipment grew at 11.1%, indicating continued need for capacity across business sectors. With September’s Fed rate cut coming only two weeks before the close of the quarter, much of this growth occurred in the environment of higher interest rates.
Looking to the next Fed rate decision on Wednesday, Nov. 6, we will see how the additional GDP data will affect the path of interest rates for the remainder of the year.”