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The American economy According to a Commerce Department estimate, third-quarter growth grew faster than expected.
The Bureau of Economic Analysis (BEA) released its first estimate on Tuesday third quarter GDPwhich showed that the economy grew at an annual rate of 4.3% in the three-month period including July, August and September.
That figure exceeded expectations of economists surveyed by LSEG, who had estimated GDP growth of 3.3% in the third quarter.
The report also shows that real GDP rose by 3.8% year-on-year in the second quarter. That followed a 0.6% GDP contraction in the first quarter. Taken together, these three measures indicate that the U.S. economy grew at an annual rate of 2.5% through the first three quarters of 2025.
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Third quarter GDP was boosted by an acceleration in consumer spending. (Eduardo Munoz/Reuters)
The BEA said the rise in real GDP in the third quarter reflected increases in consumer spending, exports and the economy government expenditure which were partly offset by a decline in investments. Imports also fell in the third quarter.
“Compared with the second quarter, the acceleration in real GDP in the third quarter reflected a smaller decline in investment, an acceleration in consumer spendingand rebounds in exports and government spending. Imports fell less in the third quarter,” the BEA said.
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The report noted that real final sales to private domestic buyers – that is, the sum of consumer spending and gross private fixed capital formation – rose 3% in the third quarter, slightly faster than the 2.9% increase in the second quarter.
The price index for gross domestic purchases rose 3.4% in the third quarter, a notable increase from the 2% increase in the second quarter. The personal consumption expenditure index (PCE). – an inflation gauge that is also measured in a standalone report that can provide different readings – rose 2.8% in the third quarter, compared with a 2.1% increase in the previous quarter.
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President Donald Trump’s tariffs disrupted international trade earlier this year, causing imports to rise in the first quarter, followed by a decline in the second quarter. (Brendan Smialowski/AFP via Getty Images)
The third quarter figure is expected to be revised with the publication of a subsequent estimate. Normally, the BEA releases a first estimate, a second estimate, and a third estimate that serves as the final revision.
The government shutdown delayed the publication of the initial estimate for the third quarter, which was due at the end of October. It also affected the publication of the second estimate, which was originally scheduled for November 26.
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The BEA said its initial estimate replaces the advance and second estimates, meaning there will be only one additional GDP expenditure in the third quarter. Currently, the BEA schedule shows the last third quarter GDP release on January 22.
