U.S. Economy Grows 3.4% in Third Quarter as Investment and Spending Accelerate

The US economy expanded at a robust pace in the third quarter of 2026, driven by stronger business investment, consumer spending and government expenditure, according to an advance estimate released by the US Bureau of Economic Analysis (BEA).

US economic growth accelerated in the third quarter as stronger business investment, consumer spending and government expenditure supported expansion.

Gross domestic product (GDP) increased at an annualized rate of 3.4% between July and September, accelerating from 2.2% growth in the second quarter.

The figure also exceeded economists' expectations of 3.1%, according to Molly Moorhead's report for Yahoo Finance.

The BEA said the increase reflected higher investment, consumer spending and government spending, partly offset by a decline in exports. Imports also increased, subtracting from the calculation of GDP.

Business investment was a major contributor to the expansion, rising 12.7% during the quarter.

Spending on artificial intelligence infrastructure, including data centers, computing equipment and related technology, helped support the increase.

Consumer spending grew at an annualized rate of 3.8%, matching the pace recorded in the second quarter and marking its strongest performance since late 2024.

The figures indicated that the US economy maintained considerable momentum despite persistent concerns about inflation and the cost of living.

The advance GDP estimate was released ahead of the November 3 midterm elections, with economic conditions and household expenses among the major issues facing voters.

The report is an initial estimate and may be revised as additional economic data become available.