The U.S. economy grew at a 2.8% annual pace last quarter as consumers continued to open their wallets despite elevated interest rates. 

Forecasters expected the country’s gross domestic product — the total value of goods and services produced in the U.S. — to come in at 2.6% in the three-month period ended in September, according to a survey of economists by the data firm FactSet. 

The American economy, the world’s biggest, has shown surprising resilience in the face of sharply higher borrowing rates as the Federal Reserve tightened monetary policy in a bid to tame inflation. Despite widespread predictions that the economy would succumb to a recession, however, it has kept growing, with hiring and consumer spending holding steady.

Consumer confidence soared in October, reaching its highest level since January 2024, according to the Conference Board. That could signal that U.S. households will continue spending, a key to economic growth. 

“The percent of consumers expecting a recession in the next 12 months fell to its lowest since the question was first posed in July 2022, with just under two-thirds of respondents believing that a recession is either somewhat or very likely in the next 12 months,” noted analysts at PNC Financial Services Group in a report.

contributed to this report.