US Economy Grew 3.4% in Third Quarter, Fastest in a Year
Consumer spending and AI-sector investment drove third-quarter GDP growth to 3.4%, marking the strongest expansion in four quarters.
The United States economy expanded at an annualized rate of 3.4 percent in the third quarter, the fastest pace of growth recorded in a year, according to new data on gross domestic product.
Spending by artificial intelligence companies emerged as a notable driver of the quarter's performance, reflecting continued capital investment in AI infrastructure and development across the technology sector. Consumer spending also played a central role in sustaining momentum, underscoring the resilience of household demand despite an extended period of elevated interest rates.
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The 3.4 percent growth rate marks a significant acceleration and signals that the broader economy retained considerable strength heading into the fourth quarter. Analysts have closely watched GDP figures for signs that Federal Reserve rate increases were cooling activity, but the latest reading suggests demand held firm across key sectors.
The combination of business investment — particularly from AI-focused firms — and durable consumer outlays provided the economy with twin engines of expansion during the period. Whether that momentum can be sustained will likely depend on borrowing costs, corporate earnings, and the trajectory of consumer confidence in the months ahead.
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