Business investment showed mixed results. While spending on equipment surged, investments in housing and non-residential buildings, including offices and warehouses, dropped sharply.
The economic landscape will soon shift with the inauguration of President-elect Donald Trump next month. Trump, supported by Republican majorities in both the House and Senate, has promised an economic overhaul.
On Monday, he pledged to impose new import taxes on goods from China, Mexico, and Canada. Many mainstream economists view these proposed tariffs as inflationary, warning that U.S. importers would likely pass the higher costs to consumers.
The broader economic indicators paint a relatively healthy picture. The unemployment rate stands at 4.1 percent. Inflation, which reached a four-decade high of 9.1 percent in June 2022, has fallen to 2.6 percent.
Although this remains above the Federal Reserve’s 2 percent target, the central bank has responded by cutting its benchmark interest rate in both September and November. Another rate cut is anticipated in December.
