U.S. Economy Grew at 3.4% Annual Pace in Third Quarter
The first estimate showed faster growth than in the second quarter, with investment and spending lifting output while exports declined.
By Reuven
The U.S. economy grew 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.
The increase in real gross domestic product reflected gains in investment, consumer spending and government spending. Exports decreased, while imports increased. Imports are subtracted when GDP is calculated.
The 3.4% figure is an annualized rate, which describes how fast the economy would grow over a full year if the quarter's pace continued. Compared directly with the second quarter, real GDP increased 0.8%. It does not mean the economy grew 3.4% from a year earlier.
The faster pace primarily reflected stronger investment growth and an upturn in government spending. Those gains were partly offset by a downturn in exports. Real final sales to private domestic purchasers, a measure combining consumer spending and gross private fixed investment, rose at a 4.9% annual rate, compared with 4.6% in the second quarter.
The figures remain preliminary. An advance estimate is based on data that are incomplete or subject to revision, and later GDP reports can change the picture. BEA's second estimate is scheduled for November 25.