US Economy Expands 4.3% in Q3, Revealed in Late Commerce Department Report
Apex Group Vice President Heather Zumarraga shares her insights on the economy and market forecasts for 2026, along with investment opportunities beyond A.I., during her appearance on Varney & Co.
The U.S. economy has shown unexpected growth in the third quarter, as reported by the Commerce Department. The Bureau of Economic Analysis (BEA) released its initial estimate for third-quarter GDP, indicating an annualized growth rate of 4.3% for the months of July, August, and September.
This figure surpassed the expectations of economists surveyed by LSEG, who had predicted a 3.3% growth rate. Additionally, the report revealed that real GDP increased at an annualized rate of 3.8% in the second quarter, following a contraction of 0.6% in the first quarter. Collectively, these readings suggest that the U.S. economy has grown at a 2.5% annualized rate through the first three quarters of 2025.
INFLATION REMAINED ELEVATED IN NOVEMBER AS FED CONSIDERS PAUSING INTEREST RATE CUTS
Third quarter GDP was boosted by an acceleration in consumer spending. (Eduardo Munoz/Reuters)
The BEA attributed the rise in real GDP during the third quarter to increases in consumer spending, exports, and government spending, although these were partially offset by a decrease in investment. Notably, imports also saw a decline during this period.
“Compared to the second quarter, the acceleration in real GDP in the third quarter reflected a smaller decrease in investment, an acceleration in consumer spending, and upturns in exports and government spending. Imports decreased less in the third quarter,” the BEA stated.
US ADDED 64K JOBS IN NOVEMBER AFTER LOSING 105K IN OCTOBER, DELAYED REPORT SHOWS
Treasury Secretary Bessent has stated that the U.S. economy is on track to achieve 3% GDP growth this year. (FOX Business)
The report indicated that real final sales to private domestic purchasers, which combines consumer spending and gross private fixed investment, increased by 3% in the third quarter, slightly above the 2.9% rise in the second quarter. The price index for gross domestic purchases rose by 3.4% in the third quarter, a significant increase from the 2% rise in the previous quarter. The personal consumption expenditures (PCE) index, a key inflation measure, increased by 2.8% in the third quarter, compared to a 2.1% rise in the prior quarter.
POWELL ACKNOWLEDGES LABOR MARKET SLOWDOWN BUT REJECTS FEARS OF STEEP DECLINE
President Donald Trump’s tariffs disrupted international trade earlier this year, leading to higher imports in the first quarter, followed by a decline in the second quarter. (Brendan Smialowski/AFP via Getty Images)
The third-quarter GDP figure is subject to revision, as the BEA typically releases an initial estimate, followed by a second and a final estimate. The recent government shutdown delayed the release of the initial third-quarter estimate, which was originally scheduled for the end of October, and also affected the timing of the second estimate, initially set for November 26.
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The BEA’s initial estimate replaces the advance and second estimates, meaning only one additional third-quarter GDP release is expected. The final third-quarter GDP release is currently scheduled for January 22.
Apex Group Vice President Heather Zumarraga shares her insights on the economy and market forecasts for 2026, along with investment opportunities beyond A.I., during her appearance on Varney & Co.
The U.S. economy has shown unexpected growth in the third quarter, as reported by the Commerce Department. The Bureau of Economic Analysis (BEA) released its initial estimate for third-quarter GDP, indicating an annualized growth rate of 4.3% for the months of July, August, and September.
This figure surpassed the expectations of economists surveyed by LSEG, who had predicted a 3.3% growth rate. Additionally, the report revealed that real GDP increased at an annualized rate of 3.8% in the second quarter, following a contraction of 0.6% in the first quarter. Collectively, these readings suggest that the U.S. economy has grown at a 2.5% annualized rate through the first three quarters of 2025.
INFLATION REMAINED ELEVATED IN NOVEMBER AS FED CONSIDERS PAUSING INTEREST RATE CUTS
Third quarter GDP was boosted by an acceleration in consumer spending. (Eduardo Munoz/Reuters)
The BEA attributed the rise in real GDP during the third quarter to increases in consumer spending, exports, and government spending, although these were partially offset by a decrease in investment. Notably, imports also saw a decline during this period.
“Compared to the second quarter, the acceleration in real GDP in the third quarter reflected a smaller decrease in investment, an acceleration in consumer spending, and upturns in exports and government spending. Imports decreased less in the third quarter,” the BEA stated.
US ADDED 64K JOBS IN NOVEMBER AFTER LOSING 105K IN OCTOBER, DELAYED REPORT SHOWS
Treasury Secretary Bessent has stated that the U.S. economy is on track to achieve 3% GDP growth this year. (FOX Business)
The report indicated that real final sales to private domestic purchasers, which combines consumer spending and gross private fixed investment, increased by 3% in the third quarter, slightly above the 2.9% rise in the second quarter. The price index for gross domestic purchases rose by 3.4% in the third quarter, a significant increase from the 2% rise in the previous quarter. The personal consumption expenditures (PCE) index, a key inflation measure, increased by 2.8% in the third quarter, compared to a 2.1% rise in the prior quarter.
POWELL ACKNOWLEDGES LABOR MARKET SLOWDOWN BUT REJECTS FEARS OF STEEP DECLINE
President Donald Trump’s tariffs disrupted international trade earlier this year, leading to higher imports in the first quarter, followed by a decline in the second quarter. (Brendan Smialowski/AFP via Getty Images)
The third-quarter GDP figure is subject to revision, as the BEA typically releases an initial estimate, followed by a second and a final estimate. The recent government shutdown delayed the release of the initial third-quarter estimate, which was originally scheduled for the end of October, and also affected the timing of the second estimate, initially set for November 26.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The BEA’s initial estimate replaces the advance and second estimates, meaning only one additional third-quarter GDP release is expected. The final third-quarter GDP release is currently scheduled for January 22.
