The U.S. grew at a frothy 4.3% annual pace in the third quarter — the biggest increase in two years — but the economy is unlikely to match that feat in the waning months of 2025 due partly to the government shutdown.
Gross domestic product, the official scorecard of the economy, expanded rapidly for the second quarter in a row, the government said Tuesday. The GDP report is two months late due to the shutdown.
The economy also grew at an snappy 3.8% clip in the spring.
The rate of U.S. growth is on track to easily top 2% for the entire year, depending on what happens in the soon-to-end fourth quarter. The economy probably slowed in the final three months of the year partly because of the damage caused by the shutdown.
Still, a growth rate of 2% or more would be a victory of sorts for an economy that has encountered gusts of heavy headwinds through the year.
The resilience of the economy could also position the U.S. for similarly solid growth in 2026.
Big picture: High U.S. tariffs, persistent inflation and rising unemployment haven’t been enough to derail the U.S. economy.
Strong growth in the spring and summer offset a small contraction in GDP in the first quarter, positioning the economy to expand by at least 2% for the fourth year in a row.
Consumer spending, aided by record stock market gains, and huge business investment in artificial intelligence have been the chief propellers.
Many economists also think the U.S. could expand 2% in 2026 for the fifth straight year — above the 1.8% growth rate that is considered the long-term norm under ideal conditions.
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