The US economy expanded at its fastest rate in two years during the third quarter of 2025, buoyed by a powerful rebound in consumer spending that more than offset weaker investment growth.
Gross domestic product grew at an annualised rate of 4.3 per cent between July and September, according to revised figures from the US Bureau of Economic Analysis. The updated estimate was lifted from an initial 3.8 per cent reading and came in well above economists’ expectations of around 3.3 per cent growth. It marks the strongest quarterly performance since the third quarter of 2023 and an acceleration from the 3.8 per cent recorded in the previous quarter.
The figures underline the continued resilience of the world’s largest economy, which has significantly outperformed its G7 peers over the past year. By comparison, the UK posted annualised growth of just 0.4 per cent in the same period, while the eurozone expanded by roughly 1.2 per cent.
Household spending was the dominant driver of growth, contributing more than two percentage points to overall GDP expansion. Americans continued to spend robustly on services and discretionary items, helping to offset headwinds elsewhere in the economy. Government spending also provided a boost, while exports contributed positively as imports fell back following the introduction of tariffs earlier in the year.
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