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I The US economy grew at a faster-than-expected pace in the third quarter, according to Commerce Department estimates.
The Bureau of Economic Analysis (BEA) on Tuesday released its first estimate Third quarter GDPwhich shows that the economy grew at an annual rate of 4.3% in the three-month period including July, August and September.
That figure was higher than the expectations of economists polled by LSEG, who had estimated GDP growth at 3.3% in the third quarter.
The report also found that real GDP rose at a record annual rate of 3.8% in the second quarter. That followed a 0.6% drop in GDP in the first quarter. Taken together, those three readings show that the US economy grew at a record annual rate of 2.5% in the first three quarters of 2025.
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Third quarter GDP was boosted by accelerating consumer spending. (Eduardo Munoz/Reuters)
BEA said the rise in real GDP in the third quarter reflected an increase in consumer spending, exports and government spending which was partly attributed to a decline in investment. Imports also fell in the third quarter.
“Compared to the second quarter, the acceleration of real GDP in the third quarter showed a slight decrease in investment, the acceleration consumer spendingand increased exports and government spending. Imports fell slightly in the third quarter,” BEA said.
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Treasury Secretary Bessent said the American economy will grow by 3% of GDP this year. (FOX Business)
The report noted that real final sales to private households – which is the sum of consumer spending and total private investment – rose 3% in the third quarter, slightly faster than the 2.9% increase in the second quarter.
The consumer price index for all domestic goods increased 3.4% in the third quarter, a significant increase from the 2% increase in the second quarter. I Personal consumption expenditure (PCE) index. – an inflation gauge also measured in an independent report that can show different figures – rose 2.8% in the third quarter, compared to a 2.1% increase in the previous quarter.
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President Donald Trump’s spending spree disrupted international trade earlier this year, boosting imports in the first quarter, followed by a decline in the second quarter. (Brendan Smialowski/AFP via Getty Images)
The third quarter figure is expected to be revised with the release of the next estimate. Generally, the BEA issues a first rating, a second rating and a third rating which serves as a final review.
I government shutdown delayed the release of the first estimate for the third quarter, which was supposed to be released at the end of October. It also influenced the release of the second measure, which was scheduled for November 26.
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The BEA said its first estimate replaces earlier and second estimates, meaning there will be a single GDP release for the third quarter. Currently, the BEA schedule shows the final GDP release for the third quarter in Jan. 22.
