The U.S. economy has shown solid performance across key sectors, alleviating fears of a potential recession. In the third quarter, the GDP grew by 2.8% according to preliminary data from the Department of Commerce. Although slightly down from 3.0% in Q2, this growth still exceeded long-term projections and reflected steady consumption, underpinned by robust consumer spending, which rose by 3.7%. This resilience came despite prolonged high interest rates.

The Personal Consumption Expenditures (PCE) price index, a key inflation measure, decreased to 1.5% from 2.5% in Q2, aligning with the Federal Reserve’s 2% inflation target. Core PCE inflation, excluding food and energy, also neared the Fed’s goal, easing from 2.8% to 2.2%.

Employment also exceeded expectations, with ADP data showing private sector employment rose by 233,000 in October, the highest since July of the previous year, largely surpassing predictions.

Economists had initially anticipated slower growth due to high interest rates and the tapering effects of fiscal stimulus, but sustained growth and controlled inflation suggest the U.S. may achieve the "no-landing" scenario, where the economy avoids a significant downturn.