The US economy expanded at an annualized rate of 3.4% in the third quarter of 2026, accelerating from 2.2% in the previous quarter and exceeding market expectations of 3.2%, according to the Bureau of Economic Analysis (BEA).
The expansion marked the strongest quarterly growth in a year, supported by a sharp increase in private investment, particularly in technology and artificial intelligence infrastructure.
Private domestic investment surged 19.4%, compared with 4.6% in the second quarter. Equipment investment rose 20.9%, driven largely by spending on computers and peripheral equipment. Investment in intellectual property products increased 8.4%, while spending on structures advanced 5.4%.
Consumer spending remained a key driver of economic activity, growing 3.8%, unchanged from the previous quarter. Spending on services accelerated to 4.1%, supported by health care expenditures, while purchases of goods increased 3%.
Government spending also strengthened, rising 5.3% after a 0.1% decline in the second quarter. Private inventory investment contributed an additional 1.61 percentage points to GDP growth.
However, some sectors showed signs of weakness. Residential investment contracted 3.3%, reversing a 2.8% increase in the previous quarter.
International trade also weighed on economic performance, as exports declined 5.7% while imports surged 19.7%.
The third-quarter results reflected stronger business investment and steady consumer spending, while residential investment and net trade weighed on overall growth.
The figures represent the BEA’s advance estimate and are subject to revision as additional economic data becomes available.
