US economy expands at 3.4% annual rate in third quarter

Third-quarter U.S. economic growth beat forecasts to reach 3.4%, powered by consumer spending and AI investment.

National output accelerated to a 3.4% annual growth rate in the third quarter, driven by strong consumer spending and artificial intelligence investments. This preliminary estimate beats analyst forecasts and marks the fastest pace of expansion in a year. The upbeat data arrives just days before upcoming midterm elections.

• The driversRobust spending from technology firms building artificial intelligence infrastructure and everyday consumers fueled the expansion.
• The contextThe reading marks the final major economic release before voters head to the polls for the midterm elections.
• The contrastDespite the strong macro figures, many households continue to face financial pressure due to high everyday costs.

What's new · 51m agoRecent coverage highlights that artificial intelligence investments and consumer spending drove the robust growth, arriving right before the midterm elections.

Written from 5 of 6 outlets — 1 has since joined this story.