U.S. GDP Increased 3.4% in Third Quarter
The United States economy expanded at an annualized rate of 3.4 percent during the third quarter, exceeding expectations and marking the strongest growth in a year. Government data attributes the acceleration to robust consumer spending and an artificial intelligence investment boom. However, concurrent reports show that September inflation accelerated, driven by the Federal Reserve's preferred price gauge ticking higher. The robust growth figures arrive just days before midterm elections, offering a final snapshot of the economy.
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- ✓ U.S. gross domestic product increased at a 3.4 percent annualized rate in the third quarter.
- ✓ The third-quarter economic growth rate exceeded market expectations.
- ✓ Growth was supported by consumer spending and an artificial intelligence investment boom.
- ✓ The Federal Reserve's preferred inflation gauge rose in September as inflation accelerated.
What changed
Government data confirmed the 3.4 percent third-quarter GDP acceleration alongside reports detailing September inflation increases.
Live updates
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U.S. GDP Grows 3.4% in Third Quarter
The United States economy expanded at an annualized rate of 3.4 percent during the third quarter, exceeding expectations and marking the strongest growth in a year. Government data attributes the acceleration to robust consumer spending and an artificial intelligence investment boom. However, concurrent reports show that September inflation accelerated, driven by the Federal Reserve's preferred price gauge ticking higher. The robust growth figures arrive just days before midterm elections, offering a final snapshot of the economy.
Why it matters
The stronger-than-expected economic output provides political messaging advantages ahead of the midterms. At the same time, the persistent rise in price pressures keeps expectations alive for a potential year-end interest rate hike by the Federal Reserve. Observers note a persistent disconnect between the solid macroeconomic statistics and the public mood, as consumers continue to grapple with higher costs.
What is confirmed
- U.S. gross domestic product increased at a 3.4 percent annualized rate in the third quarter.
- The third-quarter economic growth rate exceeded market expectations.
- Growth was supported by consumer spending and an artificial intelligence investment boom.
- The Federal Reserve's preferred inflation gauge rose in September as inflation accelerated.
What to watch next
- Upcoming midterm elections and voter economic sentiment
- Federal Reserve decisions regarding potential year-end interest rate hikes
confidence 100%Sources used for this update (28)
- 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
- www.rte.ie — Houthis target Aden after 14 killed in strikes in Yemen
- 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
- Yahoo Finance — US GDP accelerates to 3.4% in the third quarter
- CNN — Last snapshot of the US economy before midterms shows stronger growth but higher inflation | CNN Business
- The Hill — US GDP grew by 3.4 percent in third quarter amid AI investment boom
- ABC News - Breaking News, Latest News and Videos — US economy grew at 3.4% annualized rate in 3rd quarter, government data shows
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