The U.S. economy expanded at a 3.4% annualized rate in July through September, the Bureau of Economic Analysis reported October 29. That accelerated from 2.2% in the second quarter.
The advance estimate measures inflation-adjusted output. The increase over the quarter itself was 0.8%; the 3.4% figure expresses that pace at an annual rate.
Investment, household consumption and government spending added to output, while exports fell. Imports increased and are subtracted in the national accounts to avoid counting foreign production as domestic output.
BEA attributed the faster overall pace chiefly to accelerating investment and a turn upward in government spending. Investment gains included business inventories and equipment, particularly computers and related equipment.
Private domestic final sales, which combine consumer spending and private fixed investment, grew at a 4.9% annualized rate, following 4.6% in the second quarter.
Reuters reported that economists in its survey had expected 3.2% GDP growth, with forecasts ranging from 1% to 4.2%. Consumer spending increased at a 3.8% annualized pace, matching the second quarter, the news agency reported. Household consumption accounts for more than two-thirds of the economy.
The release is the first estimate for the quarter and remains subject to revision as additional information becomes available. BEA schedules its second estimate for November 25.
Sources: BEA — Third-Quarter GDP Advance Estimate: https://www.bea.gov/news/2026/gdp-advance-estimate-3rd-quarter-2026 Reuters — U.S. Economic Growth Accelerates: https://www.reuters.com/world/us/us-economic-growth-accelerates-third-quarter-2026-10-29/