US economy: expectations of slowing growth and rising inflation

US markets are bracing for a week packed with economic data and the Federal Reserve's interest rate decision, amid expectations of growth slowing to 1.7% in the third quarter, rising inflation, and declining consumer confidence, with increasing pressure on households due to rising energy and commodity costs.

US markets are bracing for a week packed with economic data and decisions, amid expectations of slowing growth, rising inflation, and declining consumer confidence. According to the Associated Press, economists expect preliminary GDP data, due Thursday, to show US growth slowing to 1.7% in the third quarter of this year, compared to 2.2% growth in the second quarter. These developments come as households and businesses face increasing pressure from rising energy, commodity, and service prices, amid global trade disruptions and the repercussions of the US war with Iran on oil supplies. The economic indicators also arrive days before the US midterm congressional elections, scheduled for November 3, where the cost of living and rising prices top voters' concerns. The expected slowdown reflects continued pressures from rising energy costs and inflation, despite support for economic activity from corporate investments in AI technologies and stock market performance.