Economic growth increased during the third quarter of 2025, rising 4.4% after rising 3% during the second quarter of 2025, according to The Associated Press. Economists had been expecting growth of 4.3%. The economy reportedly has not grown faster since the third quarter of 2023.
Strong consumer spending contributed to the boost during the third quarter along with a surge in exports and a drop in imports.
Consumer spending, which accounts for 70% of U.S. GDP, rose 3.5% during the third quarter. Spending on services such as health care rose 3.6%, and goods spending rose 3%.
The personal consumption expenditures price index, which is the Federal Reserve’s key inflation metric, rose 2.8% for the quarter.
