The US economy grew by 3% per year in the third quarter of 2017, which is stronger than expected.
The growth continued the strong activity reported in the second quarter, when GDP grew at an annual rate of 3.1%.
Analysts had expected a sharp slowdown after hurricanes hit several countries back to back in the quarter.
However, consumer spending remained stable despite declining investment in domestic construction.
According to the Department of Commerce, the two quarters marked the strongest six months of economic activity for the United States since 2014.
Consumer spending, which rose 3.3 percent in the second quarter, slowed to 2.4 percent growth, a slowdown likely caused by hurricanes.
Construction costs also fell, but exports and business investment in equipment and intellectual property accelerated from Q2.
The US economy added 209,000 jobs in July 2017. The IMF reduced its growth forecasts for the US economy The US economy slowed sharply in the first quarter of 2017.
Economists have warned that inventory estimates, a major factor in GDP growth, could vary significantly from quarter to quarter.
Excluding this category, GDP – a broad measure of goods and services produced in the United States – increased by 2.3% per year.
The Commerce Department has warned that its figures do not cover all the losses caused by storms that have caused widespread closure of factories, offices and airports in countries such as Florida and Texas.
His estimates of GDP, for example, do not measure activity in US territories, such as Puerto Rico, which has suffered some of the worst damage.
The Commerce Department estimates the damage from storms on fixed assets, such as homes and government buildings, to more than $ 131 billion.
He also said he expects the government and insurers to pay more than $ 100 billion in insurance claims, with foreign companies representing more than $ 17.4 billion.
Trade Secretary Wilbur Ross said Friday’s GDP report was a sign of progress, calling it a “remarkable achievement in light of recent hurricanes.”
President Donald Trump has set the goal of achieving annual GDP growth of 3% and promised to reduce taxes and other policies designed to achieve this or a higher rate.
On an annual basis, GDP has grown by 2.3%, the trade ministry said in a report, a preliminary estimate that will be revised as more data is collected.
This pace is roughly in line with US expansion since the 2007-2009 recession.
Economists say the main economic force shown in the report makes the Fed’s central bankers more likely to raise interest rates again by the end of the year, as expected.
The consumer price index, a closely monitored measure of inflation, rose 1.3% in Q3, excluding food and energy. This remains below the Fed’s 2% target.