The U.S. economy grew 4.4% annualized in the third quarter, its fastest in two years. The Commerce Department revised the result slightly higher from an initial 4.3% estimate, driven largely by robust consumer spending.
Consumer spending, which makes about 70% of GDP, rose at a 3.5% annualized pace. Services climbed 3.6% while goods increased around 3.0%, with durables up 1.6%.
A surge in exports and a drop in imports also boosted third-quarter growth. Business investment excluding homebuilding rose 3.2%, partly reflecting bets on artificial intelligence.
Major indexes jumped after the report, including the S&P 500 and Nasdaq 100. Most big tech names, such as TSLA and Nvidia, were slightly higher.
The labor market is weaker, with employers adding about 28,000 jobs per month since March. “The United States is experiencing a jobless boom where strong growth is powered by AI investments and consumption by wealthier families, but there is almost no hiring,” said Heather Long, chief economist at Navy Federal Credit Union (Ed. note: This highlights uneven gains).
