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United States · Inflation & data · Source: bea.gov
US economy grows at 3.4% annual rate in Q3 as investment picks up
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Editor: Hedal Kolanyi / AI-assisted
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Summary: The first official estimate shows the US economy expanded faster in July to September than in the spring, helped by investment, consumer spending and government spending. Monthly data for September, published the same morning, showed annual PCE inflation at 3.6%, up from 3.4% in August, according to Axios.
What happened
The Bureau of Economic Analysis (BEA) said real gross domestic product grew at an annual rate of 3.4% in the third quarter of 2026, compared with 2.2% in the second quarter. At a quarterly rate, the increase was 0.8%.
The BEA said investment, consumer spending and government spending drove growth, partly offset by lower exports. Imports, which are subtracted when GDP is calculated, rose. Within investment, the BEA pointed to inventories and to equipment, led by information processing equipment, mainly computers. Real final sales to private domestic purchasers rose 4.9%, up from 4.6%.
Quarterly price measures eased. The PCE price index rose at a 2.1% annual rate, down from 5.0%, and the index excluding food and energy rose 2.5%, down from 3.3%.
The September personal income report gave a different picture for the month itself. The PCE price index rose 0.5% from August and 3.6% from a year earlier. Excluding food and energy, it rose 0.3% on the month and 3.1% on the year. Real disposable income fell 0.3% in September, and the saving rate was 3.8%.
Background
According to Axios, economists had expected growth of about 3.2%. Axios reported that trade subtracted 3.3 percentage points from growth as imports surged and exports declined, and that business investment rose at a pace of nearly 13%. The figures are an advance estimate and will be revised as more data arrive.
Why it matters for markets and crypto
GDP and PCE inflation are among the main data the Federal Reserve watches when setting interest rates. Changes in growth and inflation readings can shift expectations for borrowing costs, which affect pricing across financial markets, including digital assets. This is general background only and does not express a view on any asset.
What to watch next
- 25 November 2026, 8:30 a.m. EST: the BEA's second estimate of Q3 GDP and the October personal income and outlays report.
Sources
- U.S. Bureau of Economic Analysis, "GDP (Advance Estimate), 3rd Quarter 2026", 29 October 2026
- U.S. Bureau of Economic Analysis, "Personal Income and Outlays, September 2026", 29 October 2026
- Axios, "U.S. economy races ahead with 3.4% growth in third quarter", 29 October 2026
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