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The economy expanded at a 4.4% annual pace in the third quarter of 2025, an updated estimate from the Commerce Department showed, to keep the U.S. on track to score the fifth straight year of above-average growth. That marked an acceleration from an initial 4.3% surge, growth of 3.8% in the second quarter, and from a slight economic contraction that began 2025. Consumer spending, which accounts for 70% of U.S. GDP, grew at a 3.5% pace. Spending on services such as healthcare rose 3.6%, while there was a 3% uptick on goods spending, including an increase of 1.6% on so-called durable goods. "The small upward revision to Q3 GDP does not move the needle much on the economic outlook," said Michael Pearce, chief U.S. eonomist at Oxford Economics. "We still expect the economy to slow in the fourth quarter, as the shutdown and a drop in auto sales weigh on activity, but the swings in net trade and inventories driven by shifts in timing of shipments around tariff deadlines pose an upside risk."
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