US GDP Growth Highest in 2 Years

2025-12-23 13:36 By Joana Taborda 1 min. read

The GDP in the US advanced an annualized 4.3% in Q3 2025, the most in two years compared to 3.8% in Q2, and forecasts of 3.3%, the delayed estimate showed.

The growth mainly reflected increases in consumer spending, exports, and government spending.

Consumer spending rose 3.5%, the most so far this year (vs 2.5% in Q2), led by both goods (3.1% vs 2.2%) and services (3.7% vs 2.6%), mostly health care, international travel, information processing equipment and prescription drugs.

Fixed investment continued to rise although at a slower pace (1% vs 4.4%), supported by equipment (5.4% vs 8.5%) and intellectual property products (5.4% vs 15%) while investment in structures (-6.3% vs -7.5%) and residential (-5.1% vs -5.1%) continued to decline.

Also, exports rebounded sharply (8.8% vs -1.8%) due to capital and nondurable goods and imports declined further (-4.7% vs -29.3%).

Government spending recovered (2.2% vs -0.1%) and the drag from private inventories was smaller (-0.22 pp vs -3.44 pp).



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The GDP in the US advanced an annualized 4.3% in Q3 2025, the most in two years compared to 3.8% in Q2, and forecasts of 3.3%, the delayed estimate showed. The growth mainly reflected increases in consumer spending, exports, and government spending. Consumer spending rose 3.5%, the most so far this year (vs 2.5% in Q2), led by both goods (3.1% vs 2.2%) and services (3.7% vs 2.6%), mostly health care, international travel, information processing equipment and prescription drugs. Fixed investment continued to rise although at a slower pace (1% vs 4.4%), supported by equipment (5.4% vs 8.5%) and intellectual property products (5.4% vs 15%) while investment in structures (-6.3% vs -7.5%) and residential (-5.1% vs -5.1%) continued to decline. Also, exports rebounded sharply (8.8% vs -1.8%) due to capital and nondurable goods and imports declined further (-4.7% vs -29.3%). Government spending recovered (2.2% vs -0.1%) and the drag from private inventories was smaller (-0.22 pp vs -3.44 pp).
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