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US GDP Surges to 3.4% in Third Quarter
Confirmed
In Short: The BEA reported that real gross domestic product (GDP) increased at an annual rate of 3.4 percent in the third quarter of 2026, driven by increases in investment, consumer spending, and government spending, which were partially offset by a decrease in exports.
The US economy expanded at an annualised rate of 3.4 percent in the July-September quarter of 2026, accelerating from the 2.2 percent growth in the previous quarter, according to the US Bureau of Economic Analysis (BEA).
Consumer spending saw growth across both services and goods, contributing significantly to the overall economic expansion.
Business investment also accelerated in the third quarter, largely due to the ongoing artificial intelligence boom, which has also positively impacted the stock market.
The GDP Price Index rose 2.2 percent in the third quarter, below the market expectation of 3.5 percent and the 6.1 percent increase recorded in the previous quarter, indicating a moderation in price pressures.
Real final sales to private domestic purchasers increased by 4.9 percent in the third quarter, compared with 4.6 percent in the previous quarter, reflecting a robust domestic demand.
The US central bank left its benchmark interest rate in the 3.75%-4.00% range, acknowledging that inflation remains elevated but noting that domestic spending has been resilient despite geopolitical uncertainties.
Chris Zaccarelli, chief investment officer for Northlight Asset Management, noted, “The economy is also doing well – with a 3.4% annualized GDP growth, the United States is growing much faster now than it was during the decades of 2% average annual growth.”
The Irish economy also showed strong growth, increasing by more than 5 percent in the third quarter, despite inflationary pressures.
Positive revaluations contributed €29.8 billion to the movement in the Irish economy, and the net financial wealth of Irish households increased by €31.8 billion in the second quarter to reach €473 billion.
The Irish economy remained a net lender vis-a-vis the rest of the world, as net investment in financial assets exceeded the net incurrence of financial liabilities by €67.9 billion.
At the end of the quarter, the government’s net financial wealth in Ireland stood at -€77.9 billion, representing a continued improvement in its net financial position.
What's confirmed
- “The contributors to the increase in real GDP in the third quarter were increases in investment, consumer spending, and government spending that were partly offset by a decrease in exports. Imports, which are a subtraction in the calculation of GDP, increased,” it said.
- “Economic growth has strengthened,” Warsh told reporters.
- Gross domestic product increased at a 3.4% annualized rate last quarter, the Commerce Department’s Bureau of Economic Analysis said in its advance estimate of third-quarter GDP on Thursday.
- The US central bank on Wednesday left its benchmark interest rate in the 3.75%-4.00% range while acknowledging that inflation “remains elevated.” Economists expected the Fed to raise rates in December.
What's still developing
- Add ANI As A Trusted Source For Reliable Information ANI | Updated: Oct 29, 2026 18:30 IST New Delhi [India], October 29 (ANI): The US economy grew at an annualised rate of 3.4 per cent in the July–September quarter of 2026, accelerating from 2.2 per cent in the previous quarter and exceeding market expectations, according to an advance estimate released by the US Bureau of Economic Analysis (BEA) on Thursday.
- Price pressures measured within the GDP report moderated during the quarter.
- At the time of press, the USD Index was little changed on the day at 102.20.
- These can be misleading, however, if temporary shocks impact growth in one quarter but are unlikely to last all year – such as happened in the first quarter of 2020 at the outbreak of the covid pandemic, when growth plummeted.
- The most reliable figures are those that compare GDP to the previous quarter e.g Q2 of 2023 vs Q1 of 2023, or to the same period in the previous year, e.g Q2 of 2023 vs Q2 of 2022.
- The economy grew at an inflation-adjusted 3.4% annual rate in the third quarter, adjusted for seasonal variations, the Bureau of Labor Statistics reported Thursday in a preliminary estimate of gross domestic product.
- These gains were partly offset by a decline in exports, while imports increased at a faster rate than in the previous quarter.
- A country’s Gross Domestic Product (GDP) measures the rate of growth of its economy over a given period of time, usually a quarter.
- “The result was driven mainly by increases in the multinational-dominated sectors of industry and information and communication in Q3 2026,” it said.
- The agency said provisional estimates indicate that gross domestic product (GDP) increased by 5.5 per cent between July and September when compared with the previous quarter.