The U.S. economy grew during the third quarter of 2022 after two previous quarters of negative growth, giving some hope that the country can avoid a recession.
The real gross domestic product of the U.S. grew at an annualized rate of 2.6% in the third quarter. In the second quarter, the U.S. economy had declined .6%, according to data released by federal officials on Wednesday.
The data also indicated that disposable income increased in the third quarter. Real disposable income increased 1.7% in the third quarter, compared to a decrease of 1.5% in the second quarter.
Many economists consider two consecutive quarters where the economy does not grow as a recession.
The White House was encouraged by the release of the data.
“Both the topline revisions, and the details under the hood, of today’s report provide evidence of the resilience of the U.S. economy and American consumers, even as inflationary pressures show signs of moderating,” said National Economic Council Director Brian Deese.
Recession fears have been spurred by increasing interest rates. The Federal Reserve issued four sets of .75% rate hikes this year to cool inflation. While the Federal Reserve intends to get inflation back to 2%, high interest rates have been associated with recessions in the past.