The US Department of Commerce announced on 23/12 that the nation's gross domestic product (GDP) grew by 4.3% in the third quarter (on an annualized basis).

Consumer spending, a primary driver of the US economy, rose by 3.5% last quarter, up from 2.5% in the second quarter. Much of this increase stemmed from a rush by consumers to purchase electric vehicles before tax incentives expired on 30/9. However, vehicle sales slowed in october and november.

People shop for Christmas decorations at a holiday market in New York on 16/11. *Photo: Reuters*

Despite the strong figures, the third-quarter report is considered outdated. Its release was delayed due to a 43-day US government shutdown. The Congressional Budget Office (CBO) estimates the shutdown could reduce fourth-quarter GDP by one to two percent. While most of this reduction will be recovered, seven to 14 billion USD could be permanently lost.

The US consumer landscape remains mixed. Surveys indicate that high-income households, benefiting from a rising stock market, are driving consumption. Conversely, low and middle-income consumers struggle with increasing living costs exacerbated by import tariffs. Economists refer to this disparity as a "K-shaped economy".

This K-shaped trend extends to businesses. Large corporations demonstrate resilience against import tariffs and invest heavily in artificial intelligence (AI), while smaller companies face significant challenges.

Economists suggest that US President Donald Trump's policies have triggered a "payment crisis", contributing to a decline in his approval ratings. Furthermore, families face potentially higher electricity bills as the rapid expansion of AI and cloud computing data centers drives a surge in energy demand.

Nevertheless, on the social media platform Truth Social, Mr. Trump asserted that "tariffs have helped the US achieve amazing economic numbers." He predicted the situation "will get better and better," reiterating his claim that the US "has no inflation."

The US Federal Reserve (Fed) cut interest rates for the third consecutive time this month, bringing the benchmark interest rate in the US to 3.5-3.75%. However, the agency warned that further reductions in lending rates are unlikely in the short term, as it awaits additional developments in inflation and the labor market.

*By Ha Thu (Reuters)*