U.S. GDP grew at a blistering 4.3% pace in the third quarter

The U.S. economy grew at a blistering 4.3% annual pace in the third quarter, marking the strongest growth in two years, according to new government data released Tuesday.

That growth in U.S. GDP — the nation’s output of goods and services — far outpaced the forecast for 3% growth, according to economists polled by financial data firm FactSet. The third-quarter figure, released by the Commerce Department, reflects an uptick from the second quarter’s annualized growth of 3.8%.

An acceleration in consumer spending, along with an upswing in exports and government outlays, helped propel economic growth, the Commerce Department said. And despite widespread pessimism about the economy, consumers are continuing to open their wallets, government data shows.

“While worries surrounding the jobs market, tariffs and inflation continue to swirl, the economy continues to defy its doubters by chugging higher,” said Bret Kenwell, U.S. investment and options ***yst at eToro, in a Tuesday email. 

Exports grew at an 8.8% rate, while imports, which subtract from GDP, fell another 4.7%.

At the same time, inflation ticked higher from the previous quarter, with Tuesday’s data showing that the personal consumption expenditures index, or PCE, rose at a 2.8% annual pace last quarter, compared with 2.1% in the second quarter. 

Core PCE, which excludes the more volatile food and energy categories, grew 2.9%, up from 2.6% in the previous quarter. Both are above the Federal Reserve’s target inflation rate of 2%.

The economy has shown resilience this year. Inflation has remained stubborn, though not as severe as economists initially feared after President Trump unveiled tariffs earlier this year. Some retailers have cushioned the impact by absorbing the added costs, while others have pblocked them on to consumers through higher prices.

The labor market remains a weak spot, with employment numbers showing a slowdown in hiring during the second half of 2025. In November, the unemployment rate rose to 4.6%, the highest since 2021.

Tuesday’s report, which was delayed due to the government shutdown, is the first of three estimates the government will make of GDP growth for the third quarter of the year.