U.S. Economy Roars Ahead With 4.3% Growth, Defying Inflation and Labor Headwinds

by Emmitt Barry, with reporting from Washington D.C. Bureau Staff

(Worthy News) – The U.S. economy grew at a robust 4.3% annual rate in the third quarter, marking its fastest expansion in two years, according to new data released Tuesday by the U.S. Commerce Department.

Gross domestic product surged well above economists’ expectations of 3% growth, driven by stronger consumer spending, rising exports, and increased government outlays. Consumer spending, which accounts for roughly 70% of economic activity, climbed at a 3.5% annual pace, while exports jumped 8.8% and imports fell, further boosting GDP.

Despite the strong growth, inflation moved higher. The personal consumption expenditures index — the inflation gauge favored by the Federal Reserve — rose at a 2.8% annual pace, with core inflation ticking up to 2.9%, both above the Fed’s 2% target.

Government spending rebounded after contracting in the prior quarter, helped by higher state, local, and federal defense expenditures. Private business investment, however, slipped slightly, reflecting ongoing weakness in housing and commercial construction.

The report underscores continued economic resilience under President Donald Trump, even as higher interest rates and tariff uncertainty weigh on hiring. The labor market has slowed, with unemployment rising to 4.6% in November, its highest level since 2021.

Economists caution that growth is likely to moderate in the fourth quarter due to the impact of the recent government shutdown and cooling consumer momentum.

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