The U.S. economy grew by 4.3% in the third quarter of 2025, with healthier and more broad-based growth compared to the previous quarter. The increase was driven by rises in consumer spending, exports, and government spending, with a smaller role played by declining imports.

In the second quarter, GDP growth was primarily due to a decrease in imports, masking underlying weaknesses in economic activity. Real final sales to private domestic purchasers only increased by 1.9%, indicating that much of the growth came from import arithmetic rather than increased consumer spending or business investment.

The third quarter saw a shift with an increase in real GDP driven by consumer spending, exports, and government spending, and a decrease in investment. Real final sales to private domestic purchasers rose by 3%, showing a strengthening domestic demand for sustainable economic expansion.

Consumer spending gains were broad-based, with services like health care and goods like recreational goods and vehicles driving the increase. Exports also rebounded in the third quarter, led by capital goods and other business services, contributing to the growth.

Government spending turned positive in the third quarter, along with an increase in corporate profits. However, the release of the GDP figures was delayed due to a federal government shutdown, impacting the production of estimates and data used.

The price picture showed increased inflation pressure in the third quarter, with the personal consumption expenditures price index and core PCE excluding food and energy both rising compared to the previous quarter. Corporate profits saw a significant year-over-year increase, affected by large settlements finalized during the quarter.

Read more at Yahoo Finance.: GDP grew 4.3% in Q3, and it was ‘healthier’ growth