US economy expands at a surprisingly strong 4.3% annual rate in the third quarter
Dec 23, 2025, 5:41 AM | Updated: 8:18 am
Roofers work atop a house in Anna, Texas, Thursday, Dec. 18, 2025. (AP Photo/LM Otero)
Credit: ASSOCIATED PRESS
(AP Photo/LM Otero)
WASHINGTON (AP) — The U.S. economy economy expanded at a surprisingly strong 4.3% annual rate in the third quarter as consumer spending, exports and government spending all grew.
U.S. gross domestic product from July through September — the economy’s total output of goods and services — rose from its 3.8% growth rate in the April-June quarter, the Commerce Department said Tuesday. Analysts surveyed by the data firm FactSet forecast growth of 3% in the period.
However, inflation remains higher than the Federal Reserve would like. The Fed’s favored inflation gauge — called the personal consumption expenditures index, or PCE — climbed to a 2.8% annual pace last quarter, up from 2.1% in the second quarter.
Excluding volatile food and energy prices, so-called core PCE inflation was 2.9%, up from 2.6% in the April-June quarter.
Consumer spending, which accounts for about 70% of U.S. economic activity, rose to a 3.5% annual pace last quarter, up from 2.5% in the April-June period.
