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.
122 Articles
122 Articles
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…
US Economy Grew More Than Expected Over Summer
The US economy green at a healthy 3.4% annual pace from July through September, accelerating from the second quarter on strong consumer spending and investment in artificial intelligence, per the AP. The expansion in third-quarter wholesale domestic product—the nation's output of goods and services—was fater than the...
GDP growth picks up from 2.2% in Q2 on stronger investment and government spending
Washington, Oct 29 (EFE).- The economy of the United States grew by 0.8% in July-September compared to the second quarter of the year, while in annualized rate, the world's first power grew by 3.4% compared to the previous 2.2%, in line with analysts' forecasts. The first estimate of the data, published this Thursday by the Office of Economic Analysis (BEA), reflects mainly increases in capital investment, motivated by the rise of artificial int…
The U.S. Gross Domestic Product (GDP) rose 3.4% in the third quarter of 2026, on an annual basis, according to the preliminary reading released this Thursday (29) by the U.S. Department of Commerce. The result came above 2.2% recorded in the previous quarter and the average estimate of 3.1% of a group of economists. The factors that contributed to the growth of real GDP in the third quarter were increases in investments, consumer spending and go…
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