The U.S. economy showed unexpectedly strong growth in the third quarter, surpassing forecasts. However, the data reflects conditions from the summer before hiring slowed, consumer sentiment dropped, and financial stress increased. Inflation pressures were building, corporate profits rebounded, but the overall picture is less reassuring than it seems.

GDP grew at a 4.3% annualized pace, driven by consumer spending, exports, and government outlays. Higher-income households are spending confidently, while middle- and lower-income households feel the pressure of inflation, tariffs, and high interest rates, creating a K-shaped economic divide.

The delayed data complicates policymaking for the Federal Reserve, which has cut interest rates three times. Strong GDP numbers may call for caution, but weak hiring and rising delinquencies support the case for relief. Economists expect the government shutdown and inflation pressures to impact growth in the coming quarters.

Read more at Yahoo Finance: U.S. economy surged in Q3, GDP shows. But there’s more to it