10/30/2026
The Economy Grew Faster Than Expected as Inflation Hit a Four-Month High
The US economy grew at a 3.4% annual pace from July through September on strong consumer spending and investment in artificial intelligence. That beat the 3% growth economists had expected and the 2.2% pace of the second quarter. Business investment outside housing rose 12.7% while housing investment fell 3.3%.
Inflation also rose as the Personal Consumption Expenditures price index climbed to 3.6% from a year earlier in September on higher gas prices. Consumer spending was flat that month after adjusting for inflation. The report is the last major snapshot of the economy before Tuesday's midterm elections.
