The US economy is growing at its fastest pace in TWO YEARS after households flocked to Taylor Swift concerts and Barbie tickets – but experts warn the trend is finally starting to slow

The US economy grew at its fastest pace in almost two years last quarter, thanks to a surge in consumer spending.

Gross domestic product rose 4.9 percent annually from July to September, according to preliminary figures released by the Commerce Ministry on Thursday.

That was an increase from 2.1 percent in the second quarter and the largest growth since the fourth quarter of 2021.

Consumer spending rose 4 percent, compared to just 0.8 percent last quarter. Americans have so far defied analysts’ expectations of a recession by maintaining strong spending.

This summer they spent record amounts on blockbuster movies and concert tours, including Taylor Swift’s Eras Tour and the Barbie Movie, starring Margot Robbie.

High consumer spending has resulted in inflation that has proven difficult for Fed officials to control. Pictured is Walmart in Philadelphia

Thursday’s numbers come two weeks before the Federal Reserve’s next policy meeting, when it will decide whether to adjust interest rates.

High consumer spending has resulted in inflation that has proven difficult for officials to control, despite brutal rate hikes aimed at raising borrowing costs.

The Fed is now expected to keep interest rates at a 22-year high of between 5.25 and 5.5 percent.

“The increase in real GDP reflected increases in consumer spending, private investment in inventory, exports, state and local government spending, federal government spending, and residential investment, which were partially offset by a decline in nonresidential fixed asset investment.” , the Ministry of Commerce said.

Most US stocks opened lower on Thursday. The Nasdaq index was down about 0.4 percent when markets opened, while the S&P 500 was down 0.2 percent.

Spending growth in the third quarter was preceded earlier this month by big job gains in September – a general indication of economic strength. The U.S. economy added 336,000 jobs last month, nearly double economists’ expectations of 170,000.

Gross domestic product grew by 4.9 percent on an annual basis in the third quarter

Consumers spent money on record-breaking movies and concert tours this summer, including Taylor Swift’s Eras tour and Margot Robbie’s Barbie

On Thursday, new data from the Department of Labor indicated that unemployment claims had increased in the grand plan but were still low, after rising from 10,000 to 210,000.

But while spending appears to be strong, other signs indicate the surge may soon end.

Shares of Mastercard fell Thursday after third-quarter earnings reports, in which the company said spending had slowed so far in October.

The company forecasts weaker-than-expected net sales growth for the fourth quarter, signaling a possible moderation in spending volumes as an uncertain economic environment prompts consumer caution.