U.S. GDP grew at a blistering 4.3% pace in the third quarter
Updated on: December 23, 2025 / 10:19 AM EST / CBS News
TL;DR
- The U.S. economy grew at a 4.3% annual pace in the third quarter, the strongest in two years.
- This growth exceeded forecasts and was up from 3.8% in the second quarter.
- Key drivers included acceleration in consumer spending, exports, and government outlays.
- Inflation, measured by the PCE index, rose to 2.8% annually, above the Fed's 2% target.
- Core PCE also increased to 2.9%, indicating rising inflation excluding food and energy.
- Despite public concerns, consumers continue to spend, though tariffs have impacted some retail prices.
- The labor market shows weakness, with hiring slowing and the unemployment rate rising to 4.6% in November.
- Economists predict slower GDP growth in the fourth quarter due to the government shutdown and other factors.
- Some analysts view the third-quarter growth as broad but unsustainable, with signs of a slowdown in consumption.