PULSE POINTS

❓WHAT HAPPENED: The U.S. economy surged at an annual growth rate of 4.3 percent in the third quarter, surpassing expectations.

👤WHO WAS INVOLVED: The Commerce Department released the data, with economists from FactSet providing forecasts.

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📍WHEN & WHERE: Data was released on Tuesday, reflecting economic activity in the United States during the third quarter.

🎯IMPACT: The growth reflects an acceleration from the second quarter’s 3.8 percent annualized growth rate, signaling strong economic performance.

The U.S. economy grew at a strong 4.3 percent annual pace during the third quarter, as per new government data released on Tuesday. This figure significantly exceeded the 3.0 percent growth forecasted by economists polled by FactSet, a financial data firm, and is the best quarterly rate of growth in two years.

According to the Commerce Department, the GDP growth—a measure of the nation’s output of goods and services—represents a notable increase from the 3.8 percent annualized growth rate in the second quarter. The acceleration suggests that the U.S. economy remains resilient despite concerns over deflation and a weakening job market.

Consumption was the key driver of growth, with the purchases up 3.5 percent on the quarter. Higher exports and lower imports also contributed to the growth boost.

Meanwhile, another important metric, real final sales to private domestic purchasers, rose at 3.0 percent in the third quarter. While strong, this number does indicate some potential weakening if the trend continues to lag behind overall growth.

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