US Economy Expands at 3.4% Annual Rate in Third Quarter as Investment Accelerates

The United States economy expanded at an annualized rate of 3.4% in the third quarter of 2026, accelerating from 2.2% in the previous quarter, according to the Bureau of Economic Analysis's advance estimate released Thursday, October 29.

The report covers economic activity between July and September. The annualized figure expresses one quarter's change as the rate that would result if it continued for a full year; it does not mean the economy expanded by 3.4% in just three months.

The BEA attributed the increase to investment, household consumption and government spending, partly offset by lower exports. Imports increased, which reduces the expenditure-based calculation of domestic output. Compared with the second quarter, the acceleration reflected faster investment and a rebound in government spending, while exports weakened.

Real final sales to private domestic purchasers, a measure combining consumer spending and private fixed investment, increased at a 4.9% annual rate, compared with 4.6% in the preceding quarter. That measure offers a view of domestic private demand without the direct contribution of inventories or government purchases.

Independent reporting confirmed the 3.4% expansion. The Associated Press reported that consumer spending grew at a 3.8% annual rate and business investment excluding housing rose 12.7%. Spending on information-processing equipment increased sharply, reflecting demand associated with artificial-intelligence infrastructure. Housing investment, by contrast, declined 3.3% amid elevated mortgage borrowing costs.

The BEA's estimate is preliminary and may change as additional source data become available. The agency has scheduled its second estimate, together with third-quarter corporate profit figures, for November 25. The latest data show faster measured growth but do not establish that all sectors or households experienced comparable improvements.