US economy bounces back to growth despite surging inflation

Commerce department estimates show 2.6% annual growth rate for third quarter, snapping two straight quarters of contraction

The US economy grew at a 2.6% annual rate from July through September, snapping two straight quarters of economic contraction and overcoming punishingly high inflation and interest rates.

Thursday's estimate from the commerce department showed that the nation's gross domestic product - the broadest gauge of economic output - grew in the third quarter after having shrunk in the first half of 2022. Stronger exports and steady consumer spending, backed by a healthy job market, helped restore growth to the world's biggest economy.