US economy grows at surprising 3.4% rate, powered by consumer spending, AI investment

The US economy expanded at a surprising 3.4% rate in the third quarter, fueled by strong consumer spending and a sharp increase in business investment linked to the AI boom. This brisk GDP growth occurred despite a downbeat assessment of the economy from households. The results exceeded expectations, highlighting the significant impact of AI investment and resilient consumer activity on the overall economic performance during this period, contrasting with the negative sentiment felt by many American households.