Robust consumer spending, AI-related investment power US economy in third quarter
The United States economy expanded at an annualized rate of 3.4 percent in the third quarter, driven by robust consumer spending and artificial intelligence-related investments. Government data shows the output marked the fastest pace of growth in a year. The strong showing came despite higher oil prices connected to conflicts abroad and accelerated inflation in September. Analysts note the solid economic performance arrived just days ahead of midterm elections, providing a political messaging boost.
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- ✓ The U.S. economy grew at an annualized rate of 3.4 percent in the third quarter.
- ✓ Growth was driven by robust consumer spending and artificial intelligence-related investments.
- ✓ September inflation accelerated while oil prices rose due to conflicts.
What changed
Preliminary government data released for the third quarter confirmed an acceleration in economic growth to 3.4 percent.
Live updates
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US Economy Grows 3.4% in Third Quarter on Spending and AI
The United States economy expanded at an annualized rate of 3.4 percent in the third quarter, driven by robust consumer spending and artificial intelligence-related investments. Government data shows the output marked the fastest pace of growth in a year. The strong showing came despite higher oil prices connected to conflicts abroad and accelerated inflation in September. Analysts note the solid economic performance arrived just days ahead of midterm elections, providing a political messaging boost.
Why it matters
The preliminary third-quarter gross domestic product report reveals surprising resilience in consumer demand despite persistent inflationary pressures. Economists warn that maintaining this rapid momentum could prove difficult if inflation continues to surge. The figures also arrive at a sensitive political juncture as voters prepare to head to the polls for midterm elections.
What is confirmed
- The U.S. economy grew at an annualized rate of 3.4 percent in the third quarter.
- Growth was driven by robust consumer spending and artificial intelligence-related investments.
- September inflation accelerated while oil prices rose due to conflicts.
Still unconfirmed
- Economists suggest the strong third-quarter growth pace will be difficult to sustain moving forward.
What to watch next
- Upcoming midterm election results and their impact on future fiscal policy.
- Upcoming jobs reports and employment data tests for the market.
confidence 100%Sources used for this update (23)
- finance.yahoo.com — Yahoo Finance - Stock Market Live, Quotes, Business & Finance News
- www.nytimes.com — The New York Times - Breaking News, US News, World News and Videos
- www.investing.com — Investing.com - Stock Market Quotes & Financial News
- nypost.com — New York Post – Breaking News, Top Headlines, Photos & Videos
- www.koreatimes.co.kr — Saudi Arabia strikes Yemen capital as Houthis vow to retaliate
- The New York Times — U.S. GDP Increased 3.4% in Third Quarter
- The Washington Post — U.S. economy grew at a fast clip in 3rd quarter, thanks to consumer spending
- CNBC — Third-quarter U.S. GDP increases a better-than-expected 3.4% as September inflation accelerates
- Axios — U.S. economy races ahead with 3.4% growth in third quarter
- ABC News - Breaking News, Latest News and Videos — US economy grew at 3.4% annualized rate in 3rd quarter, government data shows
- NPR — With days to go before the midterms, data shows the U.S. economy is doing well
- Yahoo Finance — US GDP accelerates to 3.4% in the third quarter, giving Trump a messaging boost on eve of midterms
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