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The U.S. economy grew faster than expected in the third quarter of this year, showing the biggest gain since the end of 2021, according to CNBC.

What’s going on: “Gross domestic product, a measure of all goods and services produced in the U.S., rose at a seasonally adjusted 4.9% annualized pace in the July-through-September period, up from an unrevised 2.1% pace in the second quarter, the Commerce Department reported Thursday.”

• “Economists surveyed by Dow Jones had been looking for a 4.7% acceleration in GDP, which also is adjusted for inflation.”

Why it happened: The spike was largely due to consumer spending increases, larger inventories, exports, government spending and residential investment.

The impact on the Fed: “This report confirmed what we already knew: The consumer went on a shopping spree in the third quarter,” an investment strategist told CNBC. “I don’t think anything in this report changes the outlook for monetary policy.”

In related news: Durable goods orders jumped 4.7% from August to September, according to U.S. Census Bureau data.

What to expect: Despite the Q3 growth, “demand is expected to slow moving forward,” said NAM Chief Economist Chad Moutray. “The U.S. economy is expected to grow by 2.4% and 1.7% in 2023 and 2024, respectively. Even as the probability of a ‘soft landing’ has increased, there continue to be sizable downside risks in the economic outlook.”