Preliminary data released Thursday by the U.S. Bureau of Economic Analysis (BEA) showed that U.S. real gross domestic product (GDP) grew at an annualized rate of 3.4% in the third quarter of 2026, a clear acceleration from 2.2% in the second quarter and above the market expectation of 3.2%, indicating a rebound in economic momentum.
Domestic demand remained strong, while exports were a drag. By component, third-quarter economic growth came mainly from increases in investment, consumer spending, and government spending, partially offset by a decline in exports; imports rose, and imports are treated as a subtraction in GDP calculations.
The key gauge of domestic demand — real final sales to domestic purchasers (the sum of consumer spending and private fixed investment) — rose 4.9%, up from 4.6% in the second quarter, showing that private-sector demand remains resilient.
Specifically, investment growth mainly reflected higher private inventory investment and equipment spending, with the increase in equipment led by information-processing equipment (mainly computers and peripheral equipment). Within consumer spending, growth on the services side was driven by healthcare (mainly hospitals and outpatient services) and accommodation and food services, while growth on the goods side was driven by other nondurable goods such as prescription drugs.
Government spending growth came mainly from higher federal nondefense consumption spending, related to a decrease in strategic petroleum reserve sales compared with the second quarter; however, because oil sold by the government is recorded in other components of GDP, this item has no direct effect on total GDP.
The decline in exports was mainly due to a decrease in petroleum and related products, while import growth came mainly from capital goods excluding autos.
Inflationary pressure eased markedly. On prices, the domestic purchase price index rose 3.0%, below the 5.6% increase in the second quarter; the personal consumption expenditures (PCE) price index rose 2.1%, below the 5.0% increase in the second quarter; and the core PCE price index, which excludes food and energy, rose 2.5%, below the 3.3% increase in the second quarter.
This release is an advance estimate. The BEA will publish the second estimate of third-quarter GDP along with corporate profits data on November 25, 2026, at which point this reading will be revised.
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