AI Investment and Consumer Spending Drive U.S. Economy...3.4% Growth in Q3

【Financial News, New York—Lee Byung-chul, Correspondent】 The U.S. economy grew 3.4% in the third quarter, buoyed by increased investment in artificial intelligence (AI) and solid consumer spending. With growth 1.2 percentage points higher than in the previous quarter and exceeding market expectations, observers say the U.S. economy is gaining momentum despite high inflation and interest rates.
 The U.S. third-quarter gross domestic product (GDP) growth rate, announced on the 29th (local time), came in at an annualized 3.4% quarter over quarter. That was 1.2 percentage points higher than the second-quarter growth rate of 2.2%. It also exceeded Wall Street experts’ forecast of 3.2% by 0.2 percentage points.
 Large-scale AI-related capital investment is a key reason the U.S. economy has continued to grow more strongly than expected. Major U.S. technology companies are investing vast sums in building AI data centers and in advanced semiconductors and high-performance computing equipment, helping to support economic growth.
 Continued consumer spending despite inflationary pressures also helped lift growth. In particular, “real final sales to private domestic purchasers,” which reflects underlying domestic demand in the U.S. economy, rose 4.9% in the third quarter. That was 0.3 percentage points above the previous quarter’s 4.6% increase.  The measure combines personal consumption expenditures and private fixed investment. It is used to gauge demand in the U.S. private sector while excluding the effects of changes in inventories and net exports, among other factors. This means the economy is being supported by consumption and business investment at the same time, rather than relying simply on exports or inventory growth.


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