Artificial Intelligence and the Economy

The U.S. economy grew at a 4.3% annualized rate in Q3, powered mainly by consumer spending (up about 3.5%), stronger exports and government outlays, with notable gains in health‑care services and information‑processing equipment tied to an AI boom even as business and residential investment declined. Inflation has eased to roughly 2.7–2.8% (headline PCE near 2.8% in Q3; consumer prices about 2.7% year‑over‑year in November), a backdrop that beat analysts’ roughly 3% GDP forecast but left core inflation somewhat elevated.