US economy grows at brisk 3.4% pace in third quarter on strong consumer spending and AI investment
Consumer spending, business investment and government outlays drove growth, while the Federal Reserve’s preferred inflation gauge rose further from its target.
- Real GDP grew at an annualised rate of 3.4 per cent in the July-September quarter, the BEA reported, accelerating from 2.2 per cent in the previous quarter.
- The Commerce Department reported that the PCE index rose 0.5 per cent on a monthly basis in September and was up 3.6 per cent from a year ago, matching LSEG expectations.
- Core PCE, which excludes volatile food and energy prices, rose 0.3 per cent monthly and 3.1 per cent year over year, matching expectations.
- Investment, consumer spending, and government spending drove GDP growth, though a rise in Imports acted as a drag on the headline figure, the BEA said.
- The Federal Reserve's preferred inflation gauge rose further away from the central bank's target as consumers face continued price pressures.
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GDP continues to increase, as third quarter growth surprises
WASHINGTON (CN) — The U.S. economy’s rebound in 2026 has sped up, with gross domestic product surpassing economist expectations, data released Thursday shows. The initial estimate of 3rd quarter GDP increased by 3.4%, compared with the 3% increase most economists had forecast and the 3.3% predicted by the Federal Reserve Bank of Atlanta. Government spending helped account for a large swath of growth, according to the Bureau of Economic Analysis,…
The U.S. economic growth rate for the third quarter of this year exceeded market expectations. The growth rate of the Personal Consumption Expenditures (PCE) price index in September fell slightly short of expectations. The U.S. Department of Commerce announced on the 29th (local time) that the third-quarter Gross Domestic Product (GDP) growth rate was recorded at 3.4% on an annualized basis compared to the previous quarter. This surpassed the m…
The United States economy grew more strongly than expected in the third quarter of this year. According to a preliminary estimate by the US government, the world's largest economy grew by 3.4 percent on an annualized basis. The figure corresponds to growth of 0.8 percent compared to a year earlier.
Investment, consumption and public spending boosted expansion, while exports fell, according to the BEA’s preliminary estimate.
The Independent
The Independent (US)US economy grew at brisk 3.4% pace in third quarter lifted by consumer spending
The American economy – by far, the world’s biggest – has proven resilient in the face of higher energy prices caused by the fighting with Iran
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