The US economy grew way more than expected in the third quarter

Economic Performance - The US real gross domestic product (GDP) rose at an annualized rate of 4.3% in the third quarter, exceeding the expected 3.3% and surpassing the 3.8% growth in the second quarter [1][8] - The increase in real GDP was driven by consumer spending, exports, and government spending, although it was partially offset by a decrease in investment [1] Consumer Spending - Real personal consumer spending increased by 3.5% in the third quarter, compared to a 2.5% rise in the second quarter [3] - Consumption, particularly from wealthier Americans, was identified as a key driver of economic growth, with AI investment not being a significant factor in the third quarter [2] Trade Balance - Imports fell by 4.7% in the third quarter, a smaller decline compared to a 29.3% drop in the previous quarter [3] - Exports rose by 8.8% in the third quarter, recovering from a 1.8% drop in the second quarter [3] Economic Outlook - The economic report was a positive surprise amid headwinds faced in 2025, including the impact of tariff announcements and a recent government shutdown [4] - The Congressional Budget Office indicated that the government shutdown likely lowered real GDP during its duration, but growth is expected to rebound post-shutdown [4] - The Federal Reserve has noted an improving outlook for growth entering 2026, with solid growth anticipated due to factors like AI and consumer spending [7]