The economy achieved a miracle before the 2024 US election, far surpassing advanced countries, but people have their own worries.

The US economy achieved a remarkable and historic achievement in the third quarter of 2024. However, with just days to go until the presidential election, a majority of voters said they are still dissatisfied with the economic situation.

The robustness of consumer spending—which accounts for about two-thirds of all activity in the U.S. economy—plays a key role in the country's growth. (Source: Getty Images)

Recently, the US Department of Commerce released data showing that Gross Domestic Product (GDP) - a measure of all goods and services produced in the economy - grew 2.8% in the third quarter of 2024.

This pace is slightly weaker than the 3% rate in the second quarter of 2024 but higher than the 2.6% rate predicted by economists in a poll by FactSet - a US financial data and software company based in Norwalk, Connecticut (USA).

Previously, the non-profit organization The Conference Board reported that in September 2024, the world's largest economy had added 254,000 jobs, inflation was just above the Federal Reserve's 2% target, and consumer confidence had surged at its fastest pace since March 2021. All of these are signs of a strong economy.

James Bullard, former President of the St. Louis Fed, emphasized: “I think we should declare a soft landing right now. Ultimately, the economy has achieved that scenario. Inflation is under control without a recession – an extremely rare achievement.”

Consumer sentiment remains gloomy

The resilience of consumer spending – which accounts for about two-thirds of all activity in the US economy – played a major role in this growth.

In addition, there is the impetus from the relentless and heavy spending of the US government – ​​the reason pushing the federal budget deficit to over $1.8 trillion in fiscal year 2024.

Personal consumption expenditures — a measure of consumer activity — rose 3.7% in the quarter, marking the strongest quarterly increase since the first quarter of 2023. Federal government spending rose 9.7%, with defense spending rising 14.9%.

The personal consumer price index (PCE), the Fed's preferred measure of inflation, rose 1.5% in the third quarter compared to the same period last year, below the Fed's 2% target and a significant slowdown from the 2.5% increase recorded in the second quarter.

However, core PCE, which excludes energy and food prices, still rose 2.2%. Fed officials believe core inflation is a more accurate measure of long-term price trends.

The Fed cut interest rates in September – for the first time in more than four years – by a bold half-point. This was a sign that Fed officials were confident that inflation was under control enough to start cutting rates, turning more attention to the job market.

Despite all of these gains, consumer sentiment remains more subdued than it was before the Covid-19 pandemic, according to CNN .

According to many experts, commodity prices are now much higher than they were in 2019 - the time before the pandemic. The Fed has acted aggressively to slow inflation, however, the lingering "trauma" of high inflation remains.

A recent study by the Brookings Institution found that Americans feel very gloomy, despite a strong economy.

Economist Dan North of Allianz Trade North America stated: "There's a perfect combination of strong growth and slowing inflation. However, many people don't want to live in such high inflation. That's why they still think the economy is doing badly."

The US is far ahead of other advanced economies.

US President Joe Biden praised the strength of the world's largest economy after the release of third-quarter 2024 GDP figures.

"How far has America come since I took office – from the worst economic crisis because of Covid-19 to the strongest economy in the world?" said Joe Biden.

A White House official believes that the average annual economic growth under the Biden and Harris administration is stronger than any administration this century.

The International Monetary Fund (IMF) projects that the country's GDP will grow at an annual rate of 2.5% in the fourth quarter of 2024. This would be the strongest growth rate among major advanced economies.

Source: https://baoquocte.vn/kinh-te-dat-ky-tich-truoc-them-bau-cu-my-2024-vuot-xa-cac-nuoc-tien-tien-nguoi-dan-co-noi-lo-rieng-292147.html