Positive news for the economy? Analyzing Q3 GDP figures
By Easton Martin | December 23, 2025
The U.S. economy grew at an annualized rate of 4.3 percent in the third quarter of 2025, well above the roughly 3.3 percent most forecasters expected and faster than the 3.8 percent pace in the second quarter. This figure comes from the Bureau of Economic Analysis, which combined data to produce an initial estimate after delays caused by a lengthy federal government shutdown. The shutdown also postponed the normal release schedule for key economic data.
Consumer spending was the largest contributor to growth. Household outlays on goods and services accelerated compared with the prior quarter, reflecting stronger demand for both services and durable goods. Exports also rose, and government spending increased, while private investment declined modestly. Imports fell, which adds to GDP because imports are subtracted in the calculation.
Inflation measures included in the report showed that price growth continued above the Federal Reserve’s 2 percent target. The PCE price index rose faster than in the prior quarter, showing that inflationary pressures remained present even as output expanded.
