U.S. Economy Grew a Strong 4.9%, Driven By Consumer Spree That May Not Last

U.S. economic growth surged this summer, as consumers spent at a blockbuster rate that will be difficult to sustain.

The economy expanded at a 4.9% annual pace in the third quarter—more than double than in the second quarter—the Commerce Department reported Thursday. Overall gross domestic product, reported as a seasonally- and inflation-adjusted rate, and consumer spending both recorded the fastest pace since late 2021. The acceleration won’t change the Federal Reserve’s plans to hold rates steady at their meeting next week.