The U.S. economy grew at a 4.3% annualized rate in the third quarter of 2025 — the fastest pace in two years and well above expectations. This stronger-than-expected growth was driven mainly by robust consumer spending, rising exports, and increased government outlays. Real GDP also accelerated from 3.8% in Q2 to 4.3% in Q3, beating forecasts around 3.3%.
Bureau of Economic Analysis +1
Despite this strong expansion, inflation remains elevated above the Federal Reserve’s 2% target, and mixed signals in the labor market — including slower hiring — may affect future monetary policy decisions.
AP News
Economists warn that while Q3 growth was impressive, momentum could ease in the fourth quarter due to lingering effects from earlier government shutdowns and broader economic headwinds.
