US consumers keep economy on solid ground ahead of election | U.S. & World [Video]

By Lucia Mutikani

WASHINGTON (Reuters) -The U.S. economy grew solidly in the third quarter, with consumer spending increasing at its fastest pace in 1-1/2 years and inflation slowing sharply, continuing to defy forecasts of a recession and outperforming its global peers ahead of the Nov. 5 presidential election. 

The Commerce Department’s advance estimate of third-quarter gross domestic product on Wednesday also showed robust business investment in equipment last quarter. 

The report was published less than a week before Americans head to the polls to choose Democratic Vice President Kamala Harris or Republican former President Donald Trump as the country’s next president.

Polls show the race is a toss-up, with the health of the economy the top priority for voters, who have grumbled about high food and housing costs. The economy has stayed resilient despite 5.25 percentage points of interest rate increases in 2022 and 2023 from the Federal Reserve to tame inflation.

“The …