US economy grows 3.4% in Q3, beating expectations

The US economy expanded at an annualized rate of 3.4% in the third quarter of 2026, accelerating from 2.2% growth in the previous quarter, and exceeding market forecasts of 3.2%.

The pickup in real gross domestic product primarily reflected an acceleration in investment and an upturn in government spending, according to an advance estimate by the Bureau of Economic Analysis on Thursday.

Those gains were partly offset by a downturn in exports, while imports increased at a faster pace than in the second quarter.

Real final sales to private domestic purchasers, which combine consumer spending and gross private fixed investment, rose 4.9% in the July-September period following a 4.6% increase in the second quarter.

Price pressures eased during the quarter, with the gross domestic purchases price index rising 3% compared with a 5.6% advance in the preceding three months.

The personal consumption expenditures price index increased 2.1% in the third quarter, down sharply from a 5% increase in the second quarter.

Excluding volatile food and energy components, the core personal consumption expenditures price index rose 2.5%, slowing from 3.3% in the prior quarter.