Business · Economy · 11 hrs ago
US economy grew 3.4% in third quarter, beating expectations
The US economy grew at a 3.4% annualized rate from July to September, according to preliminary GDP data from the Commerce Department.
That was faster than the 3.2% growth economists had expected and above the 2.2% rate recorded in the second quarter.
Investment, consumer spending and government spending supported growth, while falling exports partly offset their contribution.
Imports also rose, and the GDP calculation treats imports as a negative contribution.
The personal consumption expenditures price index rose 2.1%, less than the 3.4% expected, while its core measure, which excludes food and energy, increased 2.5%, slightly above the 2.4% forecast.
The figures show stronger economic growth alongside mixed inflation readings; the data are preliminary.
The US economy grew at an annualized rate of 3.4% in the third quarter, exceeding economists’ 3.2% forecast.
The Commerce Department’s preliminary data covered July through September.
Investment, consumer spending and government spending supported growth, while falling exports partly offset those gains.
Personal consumption expenditures rose 2.1%, below the 3.4% market expectation, while the core measure rose 2.5%, above its 2.4% forecast.
Consumer spending increased 0.5% in September from the previous month.
- Who
- The US economy; the Commerce Department released the preliminary figures.
- What
- GDP grew at an annualized rate of 3.4% in the third quarter, above the 3.2% forecast.
- When
- The third quarter of 2026, covering July through September; the data were reported on October 29, 2026.
- Where
- The United States.
- Why
- Investment, consumer spending and government spending contributed to growth. Falling exports partly offset the increase.
This story does not have two clearly opposing sides.
The US economy grew 2.5%.
The US economy grew 2.2%.
GDP grew at an annualized rate of 3.4%, with investment, consumer spending and government spending contributing.
Consumer spending increased 0.5% from August.
The Commerce Department’s preliminary third-quarter GDP data were reported.
- Third-quarter GDP growth
- 3.4% annualized
- Market forecast
- 3.2% growth
- Second-quarter GDP growth
- 2.2%
- Personal consumption expenditures price index
- Up 2.1% in the third quarter
- Core personal consumption expenditures price index
- Up 2.5% in the third quarter
- September consumer spending
- Up 0.5% from the previous month
5 sources
What people are saying
The private consumer remains a support despite inflation, high fuel prices and rising interest rates.
However, AI is increasingly also being financed through debt, which makes growth more vulnerable to sudden liquidity crises.