Business
U.S. economic growth remains impressive. It's the envy of the world, except at home
WASHINGTON — The last and most consequential report on the nation’s economic health before next week’s election provided more evidence of America’s resilient growth. Whether it will make a difference to voters is an open question.
The Commerce Department said Wednesday that U.S. gross domestic product, the broadest measure of economic output, expanded at a robust annual rate of 2.8% in the third quarter. A country’s GDP is a tally of the value of all goods and services produced in the nation.
The growth was a slight deceleration from the 3% annualized increase in the second quarter, but U.S. economic activity continued to far outpace almost every other developed nation. “The outlook is for more of the same with growth the envy of the world,” said Chris Rupkey, chief economist at Fwdbonds, a economic and markets research firm in New York.
The latest GDP increase was again powered by durable consumer spending as U.S. households have benefited from a solid job market, declining inflation and booming stock market.
“It’s impressive, phenomenal,” said Jeffrey Korzenik, chief economist at Fifth Third Bank, referring to the American economy’s exceptional run of strong output and full employment.
The Labor Department is set on Friday to release job creation and unemployment numbers for October, but analysts are discounting the report as the data are expected to be badly distorted by the temporary effects of two hurricanes and a strike by Boeing workers. In September, the American economy added 254,000 new jobs and unemployment ticked down to a historically low 4.1%.
With the third-quarter results, U.S. GDP is now projected to increase by nearly 3% for the full year, after posting similarly strong results in 2023 and the second half of 2022 . That compares with projected growth this year of about 1% or less for other leading advanced economies, including Germany, Japan, the United Kingdom and Canada.
U.S. GDP reached about $82,000 last year on a per-person basis — almost double the average of rich nations and more than six times that of China, the second largest economy after the U.S., and Russia, No. 11 in total output, according to World Bank data.
“The U.S. is still the standard among developed markets,” said Stephen Juneau, a senior U.S. economist at Bank of America.
Juneau sees some of the same underlying strengths in the latest report continuing to keep the economy on a steady if somewhat slower growth trajectory in the coming quarters.
The banking sector has been solid, as have corporate profits. Productivity has picked up in recent quarters. And an influx of immigrants, legal and undocumented, has boosted the labor supply, helping employers to keep growing and hold down wage inflation. “That’s been an exceptionalism of the U.S. economy — waves of immigration,” said Juneau.
They’ve also helped boost household spending, which accounts for about two-thirds of U.S. economic output. Consumer spending jumped 3.7% in the third quarter, as people bought more cars and spent money on healthcare services and to travel and eat out. Although lower-income and younger people are straining more to keep up with expenses and make debt payments, households on the whole are managing well.
Most people entered the sharp but brief pandemic recession in 2020 in good financial shape. And since then, their finances and spending have been supported by stable jobs — layoffs have remained unusually low — large government support, including stimulus checks, and appreciating assets. Most homeowners had locked in low mortgage rates before the Federal Reserve began jacking up interest rates in March 2022 to curb inflation.
Although job and wage gains are expected to moderate, the Fed has begun cutting interest rates now that inflation is closing in on its 2% target. That should help businesses and consumers, and give a lift to the housing market. In the third quarter, residential investment continued to be a drag on GDP, but businesses spent more for equipment especially to boost their information and transportation capabilities. That bodes well for future growth and productivity, which also has picked up in recent quarters.
U.S. imported more goods in the last quarter than it exported, which is a minus for GDP. But in places like Southern California, home to the largest warehousing and logistics operations in the U.S., that’s translated to more activity in the storage and movement of goods. The Port of Los Angeles, the busiest container complex in the nation, said it handled a record 954,706 containers in September, although some of the 27% increase reflected advanced purchases and diversions due to labor tensions at Eastern seaports.
“Right now the U.S. consumer is buying everything that isn’t nailed down,” said Rupkey. “The economy now is stronger than it was before the pandemic and trying to convince people otherwise is just completely foolhardy. The economy by almost every measure is better than it was four years ago.”
Yet while the U.S. economy may be the envy of the world, it isn’t so much at home. Polls have consistently shown Americans are mired in a sour, griping mood when it comes to the economy, which may prove to be a significant factor in the election.
Many analysts attribute the disconnect to two key elements: One is bad memories of high inflation especially in 2022, which means that prices for groceries and other goods, while now growing far more modestly, remain on the whole about 20% higher than before the pandemic. The second is that people’s feelings about the economy reflect their political leanings: Many Republicans, disregarding their own strong personal finances, have a jaundiced view of the economy under Democratic President Biden.
Korzenik, the Fifth Third Bank economist, suggests a third factor might be at play: He says there’s been a general worsening or shrinking of services for consumers, whether it’s a stay at a hotel where many now don’t do housekeeping unless requested, or a lack of experienced staff to help you at retail stores.
“I’m getting less for my money,” he said, calling it an overall “degradation of service quality.”
The American economy also has weak spots. Manufacturing activity remains soft. Strong growth in stocks and houses has come hand in hand with increased wealth inequality. And heavy federal spending in response to the pandemic added to the deficit and bloated public debts, which will crowd out investments and increase the government’s interest costs.
Of more immediate concern, there is a lot of uncertainty over the election outcome, especially because of Trump’s threats to ramp up tariffs and deport millions of undocumented immigrants, which would affect the labor market. For now, though, economists remain bullish about the outlook.
“The U.S. economy is firing on all cylinders at the current time and save a large external shock or domestic policy error, the U.S. economy is poised to close out the year on a strong economic note,” said Joseph Brusuelas, chief economist at the tax and consulting firm RSM US.
Business
In a first for the country, voters in Monterey Park ban data centers
Residents of Monterey Park voted overwhelmingly to ban data centers on election day, making the San Gabriel Valley city the first in the nation to do so by public vote.
As of Wednesday, 86% of votes were in favor of Measure NDC, the city ban, according to the Los Angeles County registrar-recorder/county clerk.
Other cities and towns have passed moratoriums on data centers, as a wave of opposition sweeps the country. But the Monterey Park vote can only be overturned by another ballot measure, making it the most permanent data center ban in a jurisdiction.
Monterey Park’s City Council had already banned data centers by ordinance, after a proposed 247,000-square-foot data center met an outpouring of public anger and concern. The developer withdrew that plan.
That facility would have been less than 500 feet away from the nearest home, and would have used three times the electricity of the entire 60,000-person city. Residents said it would have caused noise and air pollution and driven up electricity rates.
“This ensures long-lasting protections for current and future generations,” Amy Wong, co-founder of the group San Gabriel Valley Progressive Action, said of the vote. “It means that future city councils cannot overturn a data center ban, even if data center developers wanted to spend money to fund pro-data center candidates.”
The measure had no formal opposition. The developer of the proposed facility, investment firm HMC StratCap, said it wouldn’t engage in the ballot fight when it withdrew in March.
The Data Center Coalition, an industry trade group, expressed disappointment in the vote.
“It sends a signal that the area is closed for business, both for data centers and for other significant economic development projects,” state policy director Khara Boender said.
“It deprives local residents of the opportunity to compete for jobs and investment, while also causing the area to relinquish substantial long-term economic investment, high-wage jobs, and critical tax revenue to neighboring areas or other states.”
SGV Progressive Action worked with hyperlocal groups including No Data Center Monterey Park to rally support for the measure.
The group is now focused on stopping data center proposals in the City of Industry and fighting a move by City of Industry, Santa Fe Springs, Vernon and City of Commerce to welcome data centers and other industry with fast-tracked permitting and tax incentives.
City of Industry, in the San Gabriel Valley, and Vernon, south of downtown L.A., are primarily industrial areas, each with around 300 permanent residents. They are employment centers, and tens of thousands of workers commute in daily.
There has been little vocal opposition to data centers among the few residents of these cities. Wong said the protest is primarily coming from the surrounding neighborhoods.
“If a data center gets built in City of Industry, residents across the region would bear the brunt of pollution and increased utility costs,” Wong said, noting that it is surrounded by 16 other cities and unincorporated communities.
Data center proposals have been limited in California compared to Virginia, Texas, Georgia, Illinois and Arizona, which sit at the center of a recent boom in hyperscaler facilities to power artificial intelligence.
California has the third-most data centers in the country, with 300, but high electricity rates, expensive land and regulatory hurdles mean that fewer, and smaller, facilities are currently planned than in other hotspots.
That doesn’t mean opposition hasn’t been fierce. In Coachella and Imperial County, residents are showing up in droves to protest local proposals.
In the San Gabriel Valley, Montebello, El Monte and Baldwin Park have all enacted temporary moratoriums, and Alhambra recently banned data centers as part of a zoning code update.
Wong said she hoped the ballot measure vote would galvanize the opposition. “The vote is a testament to the people power of our region,” she said. “Our region is worth protecting, and we won’t let data centers determine our future.”
Business
Rent-hike ban to protect fire victims ends despite gouging concerns
A rule intended to prevent rent gouging in the wake of the Eaton and Palisades fires has lapsed in Los Angeles County, possibly exposing some renters to hikes.
The executive order that blocked rent increases was issued by Gov. Gavin Newsom amid the devastating wildfires last year. Under the order, landlords couldn’t increase rents by more than 10% above their prefire levels.
The rule, which was supposed to be temporary and was repeatedly extended, ended Friday after a vote to extend it again failed to garner enough votes. Supervisor Lindsey Horvath, whose district includes Pacific Palisades, sounded the alarm in a motion to extend price protections that failed to pass at the Board of Supervisors’ May 19 meeting.
“These price gouging protections continue to be necessary as construction and rebuilding continue, and as thousands of people remain displaced,” the motion said. “Families which signed short-term leases could face drastic price increases of 50% or more without further price gouging protection.”
Los Angeles County is home to more than 1 million rental properties, though not all of them needed protection from the new rule. There are already stricter rent increase caps for many residences, depending on the location, type and age of the building. Despite the rent control in the region, the people of Los Angeles pay among the highest rents in the country.
It is uncertain whether renters will face rapidly rising rents now that the protection has lapsed. But some real estate experts and policymakers said there was no need for the temporary rule that was part of the governor’s state of emergency.
Supervisors Kathryn Barger, Janice Hahn and Holly Mitchell abstained from voting on the motion to extend the protection, while Supervisors Hilda Solis and Horvath supported it.
“I abstained because I did not see sufficient evidence to justify extending this emergency ordinance, nor did I see evidence to eliminate it entirely,” Hahn said.
Barger’s office said she supported allowing the protections to sunset while waiting to see whether new information emerged.
“Market data already shows countywide rents are only about 2% above pre-emergency levels and rental inventory has grown,” Barger representative Helen E. Chavez Garcia said. “The Supervisor is also mindful of the burden these ongoing protections place on small property owners throughout the county.”
Mitchell did not immediately respond to a request for comment.
There haven’t been steep rent hikes in neighborhoods within three miles of the Palisades fire, according to a Times analysis of data from Zillow, the property listing company.
In ZIP Codes within three miles of the Palisades fire, rent increased 4.8% from December 2024 to April 2025. In areas around the Eaton fire, which destroyed swaths of Altadena, rent jumped 5.2% in the same period.
In L.A. County, ZIP Codes farther from the fires saw only about a 2% increase.
A landlords representative, Jesus Rojas of the Apartment Owners Assn. of Greater Los Angeles, told the supervisors during public comment at the meeting that the county’s rent-gouging rules have “long outlived the emergency they were intended to address” and are now being “wrongfully used to harm thousands of rental housing providers throughout the county.”
“There is no proof that multifamily rental housing providers are hugely increasing rents for impacted homeowners,” Rojas said.
Indeed, there are strong signs that the property market in the Los Angeles area has at last begun to cool.
L.A. metro-area rent prices recently fell to a four-year low, with the median rent slipping to $2,167 in December.
Meanwhile, condominium sales had their slowest start of the year in decades. Condo sales in Los Angeles have plummeted to a 20-year low, with fewer than 2,000 units sold in January and February — the worst start to the year since 2005.
Newsom defended the price-gouging protections shortly after they went into effect.
“In the days following the Los Angeles firestorms, we worked quickly to protect Los Angeles survivors from any form of exploitation,” he said in February 2025. “The state has the tools in place to not only block price gouging during this emergency, but also to prosecute bad actors.”
The Los Angeles County Department of Consumer and Business Affairs said it received more than 2,000 complaints after the fires, alleging that retailers and landlords were taking advantage of people put in hardship by their losses, and sent out more than 2,000 cease-and-desist letters to businesses and landlords for alleged price gouging, said Morine Merritt, who oversees department investigations into consumer and real estate fraud.
“Close to 90% of the complaints that we received involved allegations of rent increases,” Merritt said in an interview. Now that the fire-related protections have expired, existing laws and “regular market conditions determine price increases for goods and services, including rents,” she said.
Crackdowns on fire-related rent gouging have been rare, said Chelsea Kirk of the activist organization the Rent Brigade, which analyzed L.A. County’s rental market in the year after the fires. It reported 18,360 potential examples of price gouging in listings but said that few lawsuits had been filed by authorities so far.
Last week, Rent Brigade announced what it said was the first private civil lawsuit brought by a family that claimed to be rent-gouged in the aftermath of the wildfires. Plaintiffs Randall and Candy Renick, whose Altadena home was damaged, said they were charged nearly three times the maximum permitted rate for nearly 10 months. They seek restitution of $96,000 plus civil penalties and attorneys’ fees.
The rental market has probably stabilized since the fires, Kirk said, but other families may still be “locked into illegal rents” that they agreed to pay when they were in a rush to find housing after they were displaced.
Business
Read Nick Bilton’s Letter to Scott Pelley
Dear Mr. Pelley:
I meant what I said in my letter last week to the 60 Minutes team: joining 60 Minutes is the honor of my career and I am grateful to be working alongside the people who have contributed to the most important television journalism brand this country has ever produced. While I’m new to 60 Minutes, I’ve devoted my career to investigative journalism and storytelling. I started this job excited to collaborate and to benefit from the wisdom and experience of the 60 Minutes veterans, with you among them. For that reason, one of the first things I did in my new role was call you to talk and invite you to dinner. It is a profound disappointment that you rejected that overture and chose ambush instead. Yesterday, you hijacked my first meeting with staff to disparage me, my qualifications, and my intentions with remarkable incivility and contempt. I welcome a diversity of viewpoints and respectful debate among the team, but this was nothing of the sort. Yesterday’s performative display of hostility enacted in front of the staff instead of in a civil, private conversation-demonstrated that you have no interest in contributing to the future success of the show, or approaching my new tenure with a mind open to collaboration and progress. I am here to deliver first-in-class news programming, not to make headlines about newsroom drama. I am eager to work alongside those who share this goal.
Despite yesterday’s misconduct, I had hoped that in sitting down with you today we could find a path forward together. You made clear that you are not interested in such a path.
Your antipathy to the future of the show has come through loud and clear. And I have heard you. I therefore write on behalf of CBS News, Inc. (“CBS”) to inform you that your employment with CBS is terminated for cause effective immediately. Enclosed is your formal termination letter.
Sincerely,
Nick Bilton
Executive Producer, 60 Minutes
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