US economy grows at brisk 3.4% pace in third quarter on strong consumer spending and AI investment
Consumer spending and AI-related business investment helped offset higher oil prices, while the Federal Reserve kept rates steady and signaled inflation remains elevated.
- On Thursday, the Bureau of Economic Analysis reported the U.S. economy grew at a 3.4% annualized rate in the third quarter of 2026, accelerating from the 2.2% growth recorded in the second quarter.
- Resilient consumer spending and a surge in artificial intelligence investments fueled the expansion, alongside government outlays, though rising imports acted as a drag on the headline figure.
- Separately, the Commerce Department reported the personal consumption expenditures price index rose 0.5% in September, pushing annual inflation to 3.6%, further from the Federal Reserve's 2% target.
- Maintaining its benchmark interest rate at 3.75% to 4% on Wednesday, the Federal Reserve acknowledged inflation "remains elevated," fueling analyst expectations of a potential December rate hike.
- High energy prices and geopolitical tensions make growth feel delicate, according to economists, and many Americans continue to express concern regarding the economy's long-term fiscal health.
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142 Articles
US economy posts stronger Q3 growth
The US economy grew at a healthy 3.4 percent annual pace from July through September, accelerating from the second quarter on strong consumer spending and investment in artificial intelligence. The expansion in third-quarter gross domestic product – the nation’s output of goods and services – was faster than the 2.2 percent growth registered from April through June, the US Commerce Department said on Thursday. Consumer spending rose at a brisk …
Bitcoin price reclaims $80K as US GDP beats forecasts
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US GDP Growth Accelerates to 3.4 Pc in Q3 2026, Up from 2.2 Pc in Previous Quarter
Get latest articles and stories on Business at LatestLY. The US economy grew at an annualised rate of 3.4 per cent in the July–September quarter of 2026, accelerating from 2.2 per cent in the previous quarter and exceeding market expectations, according to an advance estimate released by the US Bureau of Economic Analysis (BEA) on Thursday. Business News | US GDP Growth Accelerates to 3.4 Pc in Q3 2026, Up from 2.2 Pc in Previous Quarter.
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The U.S. economy roared ahead over the summer, delivering a better-than-expected growth report just days before the midterm elections. Gross domestic product expanded at an annualized rate of 3.4% from July through September, accelerating from 2.2% in the previous quarter, according to Commerce Department figures released Thursday. The impressive showing topped economists’ expectations of roughly […]
US economy posts strong growth, inflation stubbornly high in challenge to Trump
Real GDP increased at an annual rate of 3.4 percent in the third quarter, the department's Bureau of Economic Analysis (BEA) said in a statement, beating market expectations. "The contributors to the increase in real GDP in the third quarter were increases in investment, consumer spending, and government spending that were partly offset by a decrease in exports," the BEA said in a statement. The US Federal Reserve's preferred gauge for inflation…
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