US GDP Grows 4.4% in Q3, Fastest in Two Years

The U.S. economy expanded at its fastest pace in two years during the third quarter, driven by robust consumer spending and favorable trade dynamics, the Commerce Department reported Thursday.

Gross domestic product, the broadest measure of goods and services produced in the country, increased at a 4.4 percent annualized rate from July through September. That marked a slight revision upward from the department's initial estimate of 4.3 percent and followed a 3.8 percent rise in the second quarter. The growth rate, the strongest since the third quarter of 2023, exceeded economists' expectations of 3.3 percent, according to surveys by LSEG.

The acceleration stemmed primarily from consumer spending, which grew at a 3.5 percent pace and accounts for about 70 percent of overall economic activity. Exports also surged, while imports declined, further bolstering the figures. Government spending and investment saw upturns as well. As the Bureau of Economic Analysis explained, "Compared to the second quarter, the acceleration in real GDP in the third quarter reflected upturns in investment, exports, and government spending, as well as an acceleration in consumer spending. Imports...