The U.S. economy grew at a slightly less rapid pace than economists had expected in the third quarter. The Bureau of Economic Analysis's advance estimate of third quarter US gross domestic product (GDP) showed the economy grew at an annualized pace of 2.8% during the period, below the 2.9% growth expected by economists surveyed by Bloomberg. The reading came in lower than the 3% growth in the second quarter.

While slightly below expectations, several economists noted the third quarter GDP print reflected strong economic growth.

Meanwhile, the “core” Personal Consumption Expenditures index, which excludes the volatile food and energy categories, grew by 2.2% in the second quarter, above estimates of 2.1% but significantly lower than the 2.8% gain in the prior quarter. The data's release comes as investors try to gauge how much more the Federal Reserve will cut interest rates in 2024. Entering Wednesday's release, markets are pricing in a 99% chance the Fed cuts rates by 25 basis points at its meeting next week, per the CME FedWatch tool.