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The U.S. economy expanded at a 2.8 percent annual pace in the third quarter, the Commerce Department said Wednesday.

The economy has been growing at a fast pace over the last year. Before adjustment for inflation, the economy grew at a 7.7 percent pace in the third quarter of 2023, 4.8 percent in the fourth quarter, 4.7 percent in the first quarter of this year, 5.6 percent in the second quarter, and 4.7 percent in the third quarter.

Inflation, however, has been elevated and volatile. After adjusting for inflation, GDP grew at a 4.4 percent pace in the third quarter of last year, 3.2 percent in the fourth quarter, 1.6 percent in the first quarter of this year, and 3.0 in the second quarter.

The third quarter estimate missed forecasts slightly to the downside. The median expectation was for a 2.9 to three percent growth rate.

Consumer spending jumped  3.7 percent in the third quarter, the largest rise in six quarters. That was much higher than the three percent expected.

Imports, which are a subtraction from GDP, soared in the third quarter. Imports of goods climbed 11.6 percent, partially reflecting U.S. importers pulling forward imports for fear that the port worker strike would be a lasting obstacle to bringing in foreign-made products. This dragged down GDP by nine-tenths of a percentage point.

Government spending was a big source of economic growth in the quarter, adding nine-tenths of a percentage point to GDP growth.