The latest report from the Commerce Department's Bureau of Economic Analysis shows that the U.S. economy grew by nearly three percent during the third quarter.
In October, the government data initially showed the gross domestic product was up by 2.6%, but after further analysis, the agency said that the economy actually grew by 2.9%, beating Refinitiv's forecast of 2.7% growth.
The growth was the result of higher-than-expected consumer spending and a downward revision of imports, which are subtracted from the GDP.
Despite the third-quarter growth, inflation remains a problem, and the Federal Reserve is likely to continue raising interest rates to get it under control.
"Consumer spending and business investment in equipment are looking good despite the Federal Reserve ratcheting interest rates 3.75 percentage points higher this year," Christopher Rupkey, chief economist for markets research firm Fwdbonds, told CNN. "If the Fed is trying to slow the economy by hitting the brakes, they haven't done enough yet."
While economists expect economic growth to continue into the fourth quarter, there are still concerns about a recession in 2023.
"Beneath the apparent strength, the underlying details of the [GDP] report continue to paint the picture of a slowing economy with domestic demand stalling under the weight of elevated inflation and the most aggressive tightening cycle by the Federal Reserve since the 1980s," chief economist Gregory Daco of EY Parthenon wrote in a note to clients, according to MarketWatch.