United States GDP growth reached 3.4% annualised in the third quarter of 2026, up from 2.2% in the second quarter, according to the Bureau of Economic Analysis advance estimate released on 29 October. United States GDP growth beat forecasts of 3.1% to 3.2%, with the Atlanta Federal Reserve GDPNow model ending at 3.3%. Real final sales to private domestic purchasers, which combines consumer spending and private fixed investment, rose by 4.9% annualised, up from 4.6% in the previous quarter.
Business investment was the main driver, with artificial intelligence contributing around 0.86% of the total 3.4% quarterly growth rate. Private consumption and fixed investment remained robust, while net exports were a drag on growth. Annual gross domestic product growth edged lower to 2.1% year on year from 2.2% in the second quarter, showing the economy is growing steadily over the year, even as the quarterly pace accelerated.
United States Gdp
The jobs picture was weaker than the growth figure. Employers added only 29,000 jobs in September, and unemployment rose to 4.2%. July and August were revised down by a combined 60,000 jobs. Annual wage growth slowed to 3%, the weakest since the depths of the pandemic and well below inflation of 3.7%. Industries exposed to artificial intelligence cut jobs in September: information lost 10,000, financial activities lost 7,000 and professional and business services lost 9,000.
The Federal Reserve held rates at 3.75% to 4.00% on 28 October, a day before the gross domestic product release, in a ten-to-two vote. The strong growth figure, combined with sticky inflation, keeps pressure on the Federal Reserve to consider another rise in December, with markets pricing about an 85% chance of a quarter-point rise on 9 December. The Bureau of Economic Analysis will update the third-quarter number on 25 November and 23 December, and the first estimate is likely to change.
For households, the growth figure does not mean easier finances. Real consumer spending rose by less than 0.1% in September, and the median full-time worker earned $1,232 a week last quarter, up 1.5% against inflation of 3.5%. The economy is growing, but the benefits are going more to business investment than to household pay, and many workers face a slow hiring market.
Source: For You
