WASHINGTON : Data from the Bureau of Economic Analysis, part of the U.S. Department of Commerce, showed that gross domestic product (GDP) grew at an annual rate of 4.3 percent in the third quarter. This marks the strongest economic performance since the third quarter of 2023.
According to CNN, the stronger-than-expected expansion reflected sustained corporate investment in equipment and artificial intelligence, alongside higher government spending, largely driven by defence outlays. The Commerce Department announced the initial GDP estimate late Wednesday.
Consumer activity remained the key engine of growth. Household spending rose by 3.5 percent during the July–September period, the fastest pace since the fourth quarter of 2024, up from 2.5 percent in the previous quarter. Americans spent more on recreational goods, vehicles and international travel, underscoring continued resilience in demand.
However, not all sectors contributed positively. Inventories and residential investment, including home construction and sales, were the only components that weighed on overall GDP growth.
Economists note that while the headline growth figure highlights the underlying strength of the US economy, pressures from higher living costs and disruptions caused by the recent government shutdown may temper momentum in the months ahead.
U.S. GDP grew at 4.3% in Q3, the highest in two years, fueled by consumer spending and corporate investments. While household spending rose significantly, sectors like inventories and residential investment lagged. Economists warn that rising costs and a government shutdown might slow future growth.