United States economic outlook: third quarter of 2023

The United States economy expanded by 5.2% in the third quarter of 2023, the fastest pace in nearly two years. Consumer spending was the main driver of economic growth in the quarter, followed by accumulation of private inventories. The third quarter marked the fifth consecutive quarter of growth above the economy’s potential. Labour market growth remained solid, with 2.6 million jobs added from January to November 2023, but is easing. Inflation is also gradually slowing. Despite interest rate hikes in 2022 and in the first half of 2023, the United States economy —supported by a strong job market and retreating inflation— remains resilient, fuelling optimism that it is on course for a soft landing.

The United States economic outlook reports are published three times a year and follow the main macroeconomic developments of the United States economy and how they could affect financial conditions in Latin America and the Caribbean.