US GDP grows by 4.3% in Q3, shows the fastest pace in two years


12/24/2025

The U.S. economy grew by 4.3% on an annualized basis during the third quarter of 2025, according to the Commerce Department. This growth rate was faster than the 3.8% growth seen in the second quarter, marking the quickest pace in two years.



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Trading Economics previously forecasted a slower growth rate of 3.3%.
This report represents the first official estimate of U.S. GDP for the third quarter. It replaces the earlier preliminary data and a second estimate, which were planned to be released on October 30 and November 26, respectively, but were not issued due to the government shutdown.

Consumer spending, which makes up two-thirds of the U.S. economy, rose by 3.5% during July to September. Government spending increased by 2.2%. Business investment in fixed assets grew by 1%, while residential investment declined by 5.1%. Exports saw an increase of 8.8%, whereas imports decreased by 4.7%.

The PCE consumer price index (PCE) rose by 2.8% compared to the previous three months, up from 2.1% in the second quarter. The PCE Core index, which excludes food and energy and is closely watched by the Federal Reserve for inflation signals, increased by 2.9%, compared to 2.6% in the previous quarter.

Corporate profits in the U.S. rose by 4.4% during July to September compared to the previous quarter, reaching $3.402 trillion. In the second quarter, profits only increased by 0.2%. Year-on-year, corporate profit growth was 10.5%.

The final GDP data for the third quarter will be released on January 22.

source: tradingeconomics.com