US economy grows faster than expected but inflation rises to 3.7%

Commerce department data contrasts with sharp deterioration in consumer sentiment as midterms loom

The US economy grew faster than expected in the third quarter while inflation accelerated in September, according to new commerce department data released on Thursday, less than a week before the midterm elections that will determine control of Congress.

Gross domestic product (GDP) increased at a 3.4% annualized rate last quarter, the commerce department’s ⁠bureau of economic analysis said in its advance estimate of the third-quarter GDP on Thursday. Economists polled by Reuters had forecast GDP advancing at a 3.2% pace.

Estimates ranged from ⁠a 1% growth rate to a 4.2% pace.