Washington:The US economy grew at an annualized rate of 3.4% in the third quarter of 2026, marking an increase from the 2.2% growth observed in the previous quarter and exceeding market expectations of 3.2%.

According to Anadolu Agency – English, the growth in real gross domestic product was largely driven by an increase in investment and a rise in government spending, as reported in an advance estimate by the Bureau of Economic Analysis.

Despite these gains, there was a noted downturn in exports, while imports grew at a quicker rate than in the second quarter. Real final sales to private domestic purchasers, a key measure that includes consumer spending and gross private fixed investment, increased by 4.9% during the July to September period, up from a 4.6% rise in the previous quarter.

Inflation pressures moderated during the quarter, with the gross domestic purchases price index showing a 3% increase, a decline from the 5.6% advance recorded in the previous three months. The personal consumption expenditures price index, a measure of consumer spending inflation, rose by 2.1% in the third quarter, a significant drop from the 5% increase seen in the prior quarter. Excluding the volatile food and energy sectors, the core personal consumption expenditures price index grew by 2.5%, slowing from a 3.3% rise in the previous quarter.