U.S. GDP grows more in Q3
The Bureau of Economic Analysis announced today that seasonally adjusted U.S. real GDP grew at a 3.4% annual rate in the third quarter. That is a little above the historical average growth of 3.1% and better than the numbers we’d been seeing over the last three quarters. Today’s GDP report brings the Econbrowser recession indicator […]
The U.S. Bureau of Economic Analysis reported on Friday that the nation's real gross domestic product (GDP) expanded at a 3.4% annual rate in the third quarter, marking a slight improvement over the historical average of 3.1%. This quarter's growth was better than the previous three quarters, with the quarterly real GDP growth rate, expressed annually, reaching 3.4% in 2026:Q3, up from previous quarters.
The GDP report brings the Econbrowser recession indicator index down to 3.5%, indicating a slightly more favorable economic outlook compared to the previous two quarters. The index's value is calculated based solely on publicly available GDP figures, with the last data point representing the quarter ending in 2026:Q2.
Gangbuster AI investment continued to play a significant role in the growth, but much of that spending was on imported goods. Consequently, the net contribution to the GDP was less impressive than initially anticipated. Residential fixed investment, which is expected to bear the brunt of any future Federal Reserve tightening measures, remained weak.
The most notable increase in growth came from a rise in inventories, representing newly produced goods that were not yet sold. This factor drove the substantial rise in quarterly real GDP growth for the third quarter.
Written by urgent.news from Econbrowser's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
