The American flag waves on Wall Street in New York. [Photo=Yonhap News]

The U.S. economy grew at an annual rate of 4.3% in the third quarter.

The U.S. Department of Commerce (DOC) announced on the 23rd (local time) that the gross domestic product (GDP) from July to September recorded a growth rate of 4.3%, surpassing the 3.8% of the previous quarter.

Local analysts had predicted 3% growth for the period, but stronger-than-expected growth was recorded as consumer spending, exports, and government spending all increased.

The Personal Consumption Expenditures Price Index (PCE), an inflation indicator, recorded an annualized rate of 2.8% in the third quarter, exceeding the 2.1% of the second quarter.

The core PCE price inflation rate, excluding volatile food and energy prices, was 2.9%, also rising from 2.6% in the previous quarter.

Consumer spending, which accounts for about 70% of U.S. economic activity, increased by 3.5% year-on-year in the past quarter, surpassing the 2.5% growth rate in the second quarter.

Meanwhile, the Conference Board, a U.S. non-profit economic research organization, announced on the same day that the consumer confidence index for December fell by 3.8 points to 89.1 from 92.9 in the previous month. This index, which indicates how optimistic consumers are about the economy, is based on 1985 as the benchmark (set at 100).

An economic expert interpreted, "The fact that the U.S., the world's largest economy, achieved a 4.3% growth rate means that despite various concerns, the U.S. still has a significant influence on the global economy."

By Reporter Lim Yo-hee