U.S. GDP Revised Higher to 4.4% in Q3 as Consumer Spending, Exports Surge

by Emmitt Barry, Worthy News Washington D.C. Bureau Chief

(Worthy News) – The U.S. economy expanded at a stronger pace in the third quarter than initially reported, powered by solid consumer demand and a sharp rebound in exports.

According to new data released Jan. 22 by the Bureau of Economic Analysis, real gross domestic product rose at a 4.4 percent annual rate from July through September, a slight upward revision from the previous estimate. The adjustment reflected stronger exports and business investment, offsetting a modest downward revision in consumer spending.

Consumer spending grew 3.5 percent in the quarter, up from 2.5 percent in the prior period, while exports jumped 9.6 percent. Imports fell 4.4 percent, adding further support to overall growth. Corporate profits also strengthened, rising $175.6 billion, or 4.5 percent, from the previous quarter.

Looking ahead, growth expectations remain bullish. The Atlanta Federal Reserve GDPNow model projects a robust 5.4 percent expansion for the fourth quarter, even as the Federal Reserve signals a likely pause in rate cuts.

Speaking at the World Economic Forum in Davos, Treasury Secretary Scott Bessent said the U.S. could see 4 to 5 percent real growth in 2026, while Commerce Secretary Howard Lutnick argued growth could be even higher if interest rates fall further.

Private economists are also growing more optimistic. Goldman Sachs forecasts above-consensus growth next year, though chief U.S. economist David Mericle cautioned that the labor market remains the key risk.

Labor data released the same day showed initial jobless claims holding near historic lows, while continuing claims declined for a second straight week. However, hiring momentum appears to be cooling, with payroll processor ADP reporting slower private-sector job gains late in the year.

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