Strong US economic growth for last quarter likely reflected consumers' resistance to Fed rate hikes

abcnews.go.com:

The government is expected to report stellar growth for the U.S. economy during the July-September quarter, highlighting the durability of consumer and business spending despite the Federal Reserve’s efforts to cool the expansion with high interest rates

WASHINGTON — The government is expected Thursday to report stellar growth for the U.S. economy during the July-September quarter, highlighting the durability of consumer and business spending despite the Federal Reserve's efforts to cool the expansion with high interest rates.

Last quarter's robust growth, though, will probably prove to be a high-water mark for the economy before a steady slowdown beginning in the current October-December quarter and extending into 2024.

Thursday's report is sure to be seized upon by the Biden administration as evidence that its policies have helped spur solid growth, though surveys show that most Americans hold a sour view of the president’s handling of the economy.

The Commerce Department's figures are expected to show that the nation’s gross domestic product — the economy’s total output of goods and services — expanded at a 3.8% annual pace in the third quarter, according to a survey of economists by FactSet. If accurate, that would amount to the fastest quarterly pace in nearly two years and up sharply from a 2.1% growth rate in the April-June quarter. Some economists have estimated that last quarter's annual growth could turn out to be as high as 4.5%.

Americans likely drove the economy by stepping up their spending, splurging on everything from cars to concert tickets to restaurant meals. Businesses have also been spending on new factories and other buildings, and companies likely increased their stockpiles of goods, which boosts