US economic growth accelerates to 4.3% in Q3 2025

The pace of US economic growth accelerated during the third quarter of 2025. Due to the recent government shutdown, these figures replace the initial and second estimates that were scheduled for release on Oct. 30 and Nov. 26, respectively.

Data released on Tuesday by the Bureau of Economic Analysis showed that real gross domestic product (GDP) rose 4.3% year-on-year in the third quarter, compared with growth of 3.8% in Q2 2025, and above expectations of a 3.3% increase.

The agency said the uptick was driven by higher consumer and government spending as well as exports, while imports declined, hence lifting GDP as imports are subtracted in the calculation.

On the price front, the price index for gross domestic purchases—a measure of inflation that focuses on prices paid by consumers and businesses for both domestic and imported goods— jumped 3.4% in Q3 2025, compared to 2% in the previous quarter.

Both personal consumption expenditures (PCE) price indexes also accelerated. The headline PCE index rose 2.8%, while the core PCE index, which excludes volatile food and energy prices and is the Federal Reserve’s preferred inflation gauge, climbed by 2.9% as of September 2025.