US economy expands faster than forecast in third quarter
GDP growth of 3.4% outpaces economist expectations as consumer spending and business investment drive expansion.
At a glance
- GDP expanded at 3.4% annualized rate in Q3, beating economist forecasts of 3.2%
- Consumer spending and AI-driven business investment fuelled the growth
- Higher oil prices from Middle East conflict provided a headwind to expansion
The US economy grew at a 3.4% annualized rate in the third quarter, according to the commerce department's bureau of economic analysis. This exceeded forecasts of 3.2% from economists polled by Reuters.
The stronger-than-expected growth was driven by resilient consumer spending and artificial intelligence-related business investment, which offset headwinds from higher oil prices linked to Middle East tensions.
Why it matters
The data provides an economic snapshot ahead of elections, showing resilience in the world's largest economy despite global tensions and inflation pressures.
Original reporting
- The Guardian — WorldUS economy grows faster than expected in report out just ahead of elections
- The Guardian — BusinessUS economy grows faster than expected in report out just ahead of elections
This brief was written with AI assistance from the reports listed above and checked against our editorial policy. Spotted an error? Request a correction.
