NewsABC7 News San Francisco (KGO-TV)October 30, 2026San Francisco County
US economic indicators show growth alongside high inflation ahead of midterm elections
Photo: ABC7 News San Francisco (KGO-TV)
Recent federal data shows that while the US economy continues to grow and employers add jobs, inflation driven by the war in Iran is squeezing household budgets and depressing consumer sentiment ahead of the Nov. 3 midterm elections. Prices rose at an annual rate of 3.7% in September, outpacing wage growth and rendering everyday purchases increasingly unaffordable for Americans.
Read the full story at ABC7 News San Francisco (KGO-TV)Why It Matters
Voters face a mixed economic landscape featuring rising costs for essentials like gasoline alongside steady GDP growth and low unemployment as they head to the polls.
Key Facts
- Consumer sentiment stands at the second-lowest level ever recorded in the University of Michigan's 74-year history.
- A 71% majority of poll respondents describe gasoline as unaffordable, up from 28% in February.
- The average price of regular unleaded gas stood at $4.22 a gallon, and diesel averaged $6.33 a gallon.
- Prices rose at an annual rate of 3.7% in September, exceeding the Federal Reserve's 2% target rate.
- Wages began to trail inflation in April, reducing workers' take-home spending power.
- The economy expanded at an annualized rate of 3.4% over the three months ending in September.
- Artificial intelligence spending contributed an average of 0.56 percentage points to GDP growth in each of the first two quarters.
- Consumer spending surged 0.9% in August from July, marking the fastest monthly rise since March.
- The US added an average of about 68,000 jobs per month over the first nine months of the year.
- Employers added 29,000 jobs in September, slowing down from 133,000 jobs added in August.
- The yearly unemployment rate has consistently remained at 4.4% or lower since 2017, excluding pandemic-era years.
Who's Mentioned
OrganizationFederal Reserve“Maintains an inflation target rate of 2%.”OrganizationJ.P. Morgan Asset Management“Published a study on the AI sector's contribution to GDP growth.”PersonDonald Trump“President who spoke about the US economy at a rally in Corinth, Miss.”locationCorinth“Location of President Trump's rally.”OrganizationWashington Post“Co-sponsor of a poll measuring consumer views on affordability.”OrganizationABC News“Co-sponsor of a poll measuring consumer views on affordability.”OrganizationU.S. Bureau of Labor Statistics“Supplied data on monthly job additions and unemployment rates.”OrganizationU.S. Commerce Department“Provides data on annualized GDP growth.”OrganizationAAA“Tracks average retail gasoline and diesel prices.”OrganizationAtlanta Federal Reserve“Provided an analysis of average monthly job additions.”OrganizationUniversity of Michigan“Conducts a monthly consumer sentiment survey.”OrganizationIpsos“Co-sponsor of a poll measuring consumer views on affordability.”