Posted on 12/23/2025 7:01:58 AM PST by Red Badger
The U.S. economy grew at a much greater-than-expected pace in the third quarter, boosted by strong consumer spending, a delayed report released Tuesday showed.
U.S. gross domestic product, a sum of all goods and services produced in the sprawling U.S. economy, expanded by 4.3% in the July-September period, the Commerce Department said in its initial reading of third-quarter growth. Economists polled by Dow Jones expect a gain of 3.2%.
Consumer spending expanded by 3.5% in the third quarter after rising 2.5% in the second quarter.
Increases in exports and government spending also boosted growth, while a smaller dip in private fixed investment helped as well.
The report originally had been scheduled for release on Oct. 30 but was delayed by the government shutdown. This release also replaces a second estimate that was set to drop on Nov. 26. The department’s Bureau of Economic Analysis will release one final estimate later.
A measure of growth called real final sales to private domestic purchasers rose 3% in the quarter, up 0.1 percentage point from the prior period. Federal Reserve policymakers watch the data point closely for signs of consumer demand.
The economy moved forward during the period despite persistent signs of inflation pressures.
The personal consumption expenditures price index, the Fed’s primary inflation gauge, rose 2.8% during the period, and 2.9% for core which excludes food and energy. Both were above prior respective readings of 2.1% and 2.6% and remain well above the Fed’s 2% inflation gauge. Also, the chain-weighted price index, which accounts for changes in consumer behavior such as switching to less expensive products for pricier items, rose 3.8%, a full percentage point above the forecast.
Though the report presented a largely positive view of the economy, markets reacted little as the data is backward-looking. Stock futures were slightly negative while Treasury yields held higher.
Elsewhere in the report, corporate profits soared by $166.1 billion, or 4.2%, compared with a gain of $6.8 billion in the second quarter.
I think people spend more...because shopping on line is so damn easy...don't even have to warm up the car here in NYS...
Where have I seen this article before...?
Democrats and Canada hardest hit, eh?
Is CNBC as far left as NBC? If so, they must’ve hated reporting this.
unexpectedly...
This is only the beginning and way ahead of schedule. Expect a minimum of 5% GDP growth in 2026 & may be as high as 6.5%.
Trump really has set the USA up for a Golden Age.
It’s true!
I’m surprised the stock market is yawning about this. I’d thought it’d go crazy good over this news.
The Fed’s next meeting will conclude the GDP growth rate signals lower interest rates are not necessary at this time; the economy was growing with interest rates as they are.
Paging Paul Krugman!
Not quite as far left..........
Nowhere?
2026 is shaping up to be a good year for the US economy and the ripple effect will spread around the world.
I can’t wait to see the numbers when the Big Beautiful Bill kicks in on Jan 1.
Leftists better book their flights early to Chicago to partake in the assisted suicide laws.
EC
Another reaction, Daily Mail:
“Gross domestic product — a broad measure of economic activity — jumped by 4.3 percent from July through September, the Commerce Department said.
That’s a major acceleration from the prior quarter’s 3.8 percent growth rate, and blows by expert predictions of 3.2 percent.”
“Expert predictions”
Yup. There’s that word again.
Hum, the usual surprise.
Obviously, a Democrat run city.
Is CNBC as far left as NBC? “
Yes, CNBC is a rat propaganda op masquerading as financial news network.
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