U.S. economy grew 4.3% in the third quarter, crushing estimates

The U.S. economy grew at a 4.3% annual rate in the third quarter, according to the U.S. Commerce Department. Analysts were expecting the Q3 GDP, the value of all goods and services produced across the economy, to grow at an annualized 3.2% pace in the third quarter.

The publication was pushed back by two months due to the government shutdown. U.S. GDP rose 3.8% in the second quarter.

U.S. economic data for the third quarter pointed to firmer demand and renewed price pressures. Personal consumption rose at a 3.5% annualized pace, accelerating from 2.5% in the prior quarter, underscoring resilient household spending.

Inflation measures also moved higher, with the GDP price index increasing 3.8% compared with 2.1% previously, while core PCE inflation edged up to 2.9% from 2.6%, suggesting underlying price pressures picked up as growth strengthened.