Financial News: U.S. GDP Surges 4.4% In Q3, Slightly More

U.S. GDP Surges 4.4% In Q3, Slightly More Than Previously Estimated

(RTTNews) - The U.S. economy grew by slightly more than previously estimated in the third quarter of 2025, according to a report released by the Commerce Department on Thursday.

The report said real gross domestic product spiked by 4.4 percent in the third quarter compared to the previously reported 4.3 percent surge. Economists had expected the pace of growth to be unrevised.

"The small upward revision to Q3 GDP does not move the needle much on the economic outlook," said Michael Pearce, Chief U.S. Economist at Oxford Economics.

He added, "We still expect the economy to slow in Q4, as the shutdown and a drop in auto sales weigh on activity, but the swings in net trade and inventories driven by shifts in timing of shipments around tariff deadlines pose an upside risk."

The Commerce Department said the slightly stronger than previously estimated growth primarily reflected upward revisions to exports and investment that were partly offset by a downward revision to consumer spending.

The jump in GDP in the third quarter reflected increases in consumer spending, exports, government spending, and investment as well as a decrease in imports, which are a subtraction in the calculation of GDP.

The report also said the faster GDP growth in the third quarter compared to the 3.8 percent surge in the second quarter reflected upturns in investment, exports, and government spending as well as an acceleration in consumer spending.

On the inflation front, the Commerce Department said the personal consumption expenditures (PCE) price index increased 2.8 percent in the third quarter, and the PCE price index excluding food and energy increased 2.9 percent, both the same as previously estimated.

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