US GDP Growth Tops 2.8% in Q3, Manufacturing Sectors Lead Expansion

The U.S. economy grew at an annualized rate of 2.8% in the third quarter of 2024, according to the latest report from the Bureau of Economic Analysis. The GDP estimate reflects continued economic expansion despite high interest rates.

Manufacturing sectors, particularly those tied to metalworking machinery, showed robust growth, with capital goods driving both imports and exports. Notably, business investment in equipment surged 11.1%, signaling strong demand for capacity across industries. Personal consumption also rose sharply, increasing 8.1% as spending continued to rebound post-pandemic.

"The GDP print 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.”