NEW YORK: The United States (US) economy expanded at an annualised rate of 4.3 per cent in the third quarter, marking its fastest growth in two years and significantly exceeding market expectations, according to data released by the Commerce Department on Tuesday.
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The stronger-than-expected performance comes amid easing concerns over President Donald Trump’s tariff policies and renewed optimism driven by large-scale investments by major technology companies in artificial intelligence infrastructure. The data also offers reassurance after recent indicators pointed to a softening labour market.
According to the Bureau of Economic Analysis, the growth was supported by robust consumer spending, higher exports and increased government expenditure. These gains were partly offset by a decline in private investment, reflecting caution among businesses despite improving overall conditions.
THE TRUMP EFFECT! 🇺🇸 💸
STRONGEST U.S. ECONOMIC GROWTH IN TWO YEARS pic.twitter.com/1P7AwASGHn
— DK🇺🇸🦅🇺🇸 (@1Nicdar) December 23, 2025
The GDP report, which had been delayed by nearly two months due to a government shutdown, surpassed analysts’ expectations of 3.2pc growth. The estimate is preliminary and is scheduled to be revised in early 2026.
However, the report also signalled a notable pickup in inflationary pressures. The price index for domestic purchases rose 3.4pc, compared with 2.0pc in the previous quarter, suggesting that faster economic growth is coinciding with rising prices.
The combination of strong growth and higher inflation could complicate the outlook for US monetary policy, as markets reassess the Federal Reserve’s next steps. The central bank has cut interest rates at its last three meetings, prioritising labour market stability despite inflation remaining above its 2pc target.
President Trump welcomed the figures, describing them as evidence of an ongoing economic boom driven by his policy agenda, though the data also highlighted underlying inflation challenges.
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Overall, the report underscores the resilience of the world’s largest economy, even as policymakers balance growth momentum against persistent inflation risks.