Key facts
- Third-quarter GDP grew at a 3.4% annualized rate.
- Consumer spending rose 3.8% in the third quarter.
- Economists had forecast GDP advancing at a 3.2% pace.
The US economy grew at a faster-than-expected 3.4% annualized rate in the third quarter, driven by robust consumer spending and AI-related business investment, according to the Commerce Department's Bureau of Economic Analysis. This figure surpassed economists' consensus forecast of 3.2%. Consumer spending, which accounts for over two-thirds of the economy, increased by 3.8% in the quarter. The report was released just days before the midterm elections, with the economy's performance a key electoral issue. The Federal Reserve maintained its benchmark interest rate between 3.75% and 4%, acknowledging elevated inflation but noting strong economic expansion.