WASHINGTON, D.C. — Key economic indicators showed positive momentum heading into the Labor Day weekend, with declines in fuel prices, travel costs, and mortgage rates, alongside gains in major stock indexes and stronger-than-expected GDP growth.
Gas Prices Reach Five-Year Low Ahead of Labor Day
Drivers heading into the holiday weekend are benefiting from the lowest Labor Day gas prices in at least five years. Federal officials attribute the drop to expanded domestic energy production and recent policy changes aimed at boosting U.S. output. The decrease comes as part of broader efforts to stabilize consumer energy costs following several years of elevated fuel prices.
Travel Costs Continue to Ease
Travelers are also seeing relief across the transportation and lodging sectors. According to recent data, domestic airfares are down 6% compared with last year, reaching a five-year low. Hotel rates have fallen about 11%, while car rental costs have declined by approximately 3%. Analysts note that the decrease reflects a combination of stabilizing demand and increased market competition in the travel industry.
Mortgage Rates Fall to Ten-Month Low
In the housing sector, the average 30-year fixed mortgage rate dropped to its lowest point in ten months. Freddie Mac’s chief economist cited “lower rates and solid economic growth” as key factors driving the decline. The shift comes amid broader efforts to address housing affordability and improve access to homeownership after a period of sharply rising costs.
Stock Market Hits Record Highs
Equity markets continue to rally, with both the Dow Jones Industrial Average and the S&P 500 reaching new record highs. The S&P 500 is poised for its fourth consecutive monthly gain, driven by strong corporate earnings and renewed investor confidence following the implementation of the One Big Beautiful Bill, a major economic policy package aimed at spurring growth and investment.
GDP Growth Surpasses Expectations
The second-quarter U.S. gross domestic product (GDP) was revised upward to an annualized 3.3%, exceeding many economists’ forecasts. The report highlights rising consumer spending, increased business investment, and stable inflation levels that remain aligned with the Federal Reserve’s target range. Economists point to these factors as evidence of sustained economic resilience heading into the second half of the year.
Overall, the latest figures reflect broad-based economic strength, with falling consumer costs, robust financial markets, and stronger-than-expected growth contributing to an optimistic outlook heading into the final months of 2025.
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