US economic expansion accelerates to 3.4 percent in third quarter on consumer spending

The US economy grew faster than expected in the third quarter as resilient consumer spending and AI-driven business investment more than offset the impact of higher oil prices stemming from the conflict in the Middle East. Gross domestic product increased at a 3.4 per cent annualised rate last quarter, the Commerce Department’s Bureau of Economic Analysis said in its advance estimate of third-quarter GDP on Thursday. Economists polled by Reuters had forecast GDP advancing at a 3.2 per cent...

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Oct 29, 2026, 16:48 UTC

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The United States economy expanded at an annualized rate of 3.4 percent in the third quarter, surpassing market forecasts, according to initial government data published on Thursday.

The Bureau of Economic Analysis, an agency within the US Department of Commerce, revealed the figure in its preliminary evaluation of gross domestic product for the period. The outcome topped the consensus view among economists surveyed by Reuters, who had anticipated an annualized expansion rate of 3.2 percent. Individual projections submitted ahead of the report ranged from a low of 1 percent to a high of 4.2 percent.

The stronger-than-anticipated performance was propelled largely by persistent consumer expenditures alongside robust corporate spending on artificial intelligence infrastructure. These momentum drivers helped cushion the broader economy against headwinds, notably elevated crude oil costs resulting from geopolitical instability across the Middle East.

The positive macroeconomic performance stands in contrast to the broader mood among American households. Despite the acceleration in output, consumer sentiment regarding the country's economic trajectory remains predominantly negative, a trend echoed in historic lows for Donald Trump's presidential approval numbers.

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