The U.S. economy grew faster than expected at a 3.4% annualized rate in the third quarter, with consumer spending and AI-related investment helping make up for weaker trade, according to an advance estimate released Oct. 29.
Growth from July to September sped up from 2.2% in the previous quarter. It was the strongest pace since the third quarter of 2025. Consumer spending rose at a 3.8% rate.
Business investment excluding housing climbed 12.7%. Spending on information-processing equipment jumped 37.4%, reflecting demand for technology linked to artificial intelligence. The Bureau of Economic Analysis said investment, consumer spending and higher government spending all contributed to growth.
Exports declined, while imports rose. Imports count as a subtraction in GDP calculations, and the trade changes held back the overall result. A measure combining household spending and private fixed investment rose 4.9%, compared with 4.6% in the second quarter.
The GDP report’s broad price index rose at a 3.0% pace. That was slower than the 5.6% pace in the previous quarter. The estimate is preliminary.
The BEA’s next GDP update is scheduled for Nov. 25.