U.S. GDP Grows 4.3% in Q3 2025, Exceeding Expectations

The U.S. economy expanded at a robust 4.3 percent annualized rate in the third quarter of 2025, surpassing economists' expectations and signaling continued resilience amid persistent challenges, according to the Commerce Department's Bureau of Economic Analysis.

The growth, covering July through September, marked an acceleration from the 3.8 percent increase in the second quarter and a rebound from the 0.6 percent contraction in the first quarter. Analysts had anticipated a 3.3 percent rise, based on surveys from firms like FactSet and Reuters. The Atlanta Fed's GDPNow model, a real-time estimate, had projected 3.5 percent before the official data release.

Consumer spending, which drives about 70 percent of economic activity, rose at a 3.5 percent pace, up from 2.5 percent in the prior quarter. This surge was fueled by purchases of goods like electric vehicles ahead of the September 30 expiration of federal tax credits, as well as spending on travel, recreation and dining. Exports grew sharply by 8.8 percent after a 1.8 percent decline in the second quarter, while government spending contributed positively. These gains were partially offset by a decrease in investment and a...