The U.S. economy roared ahead over the summer, delivering a better-than-expected growth report just days before the midterm elections.
Gross domestic product expanded at an annualized rate of 3.4% from July through September, accelerating from 2.2% in the previous quarter, according to Commerce Department figures released Thursday.
The impressive showing topped economists’ expectations of roughly 3% growth, providing fresh evidence of the economy’s resilience despite persistent inflation and rising energy costs.
American consumers helped fuel the expansion, with spending climbing at a 3.8% annualized pace during the third quarter. Higher-income households have remained particularly well-positioned to weather elevated prices.
Meanwhile, the artificial intelligence boom continued to drive major business investment as technology companies poured money into data centers, computing equipment and other infrastructure.
Business investment excluding housing jumped 12.7%, while spending on information-processing equipment surged 37.4%.
The encouraging figures arrive just five days before the Nov. 3 midterm elections, offering President Donald Trump and Republicans a fresh economic talking point as they fight to maintain control of Congress.
Still, the strong GDP numbers contrast with widespread frustration over the cost of living. Many Americans continue to struggle with elevated prices for everyday necessities, while the ongoing conflict with Iran has driven up gasoline and other energy costs.
Thursday’s report marks the Commerce Department’s initial estimate of third-quarter growth, with additional revisions expected in the coming months.
