US Economy Surges with 4.3% Growth in Q3, Defying Expectations

Wed Dec 24 2025 03:30:55 GMT+0200 (Eastern European Standard Time)

Amidst rising inflation and interest rates, the US economy displayed unprecedented resilience, achieving a robust growth rate of 4.3%, boosted by increased consumer spending and exports, marking the fastest growth in two years.

The US economy expanded at an annual rate of 4.3% in the latest quarter, driven by a surge in consumer spending and exports. Despite challenges like high inflation and fluctuating government policies, economists note a solid underlying momentum. This growth rate surpasses expectations, prompting optimism for future economic performance, although concerns persist regarding inflation's impact on lower-income households.

US Economy Surges with 4.3% Growth in Q3, Defying Expectations

The US economy picked up speed over the three months to September, as consumer spending jumped and exports increased.

The world's largest economy expanded at an annual rate of 4.3%, up from 3.8% in the previous quarter. That was better than expected, and marked the strongest growth in two years.

This report, delayed by a government shutdown, reveals an economy that has weathered major changes in trade and immigration policies, persistent inflation, and cuts to government spending.

Despite these hurdles, the underlying economy has shown robust momentum, outperforming many forecasts.

Aditya Bhave, senior economist at Bank of America, remarked, This is an economy that has defied doom and gloom expectations basically since the beginning of 2022, referring to the current economic climate as very very resilient.

In the third quarter, consumer spending rose at an annual rate of 3.5%, stimulated by increased expenditures on health care, even as the job market displayed signs of slowing. Imports fell, negatively impacting growth, reflecting the tariffs imposed by former President Trump earlier this year. Meanwhile, exports rebounded sharply, surging by 7.4% alongside a rise in government spending, particularly in defense.

Nevertheless, the economy faces challenges including a slowdown in business investment and hurdles in the housing market due to high-interest rates. Despite the strong showing, analysts caution that the impact of rising prices on lower and middle-income households may hinder further growth. With inflation indicators rising and consumers adjusting spending habits, the economic outlook remains cautiously optimistic.