Here's how much the economy grew in the third quarter of 2025

"US real gross domestic product rose at an annualized rate of 4.3% in the third quarter, exceeding the 3.3% expected and more than the 3.8% growth in the second quarter. "The increase in real GDP in the third quarter reflected increases in consumer spending, exports, and government spending that were partly offset by a decrease in investment," the Bureau of Economic Analysis said."

"The economy in 2025 has faced some headwinds. The effects of tariff announcements were reflected in imports, particularly in the first quarter, when real GDP declined. The fourth-quarter estimates may also be affected by the recent record-long government shutdown. The Congressional Budget Office said in late October that the shutdown likely lowered real GDP while it was ongoing and that growth "will be temporarily higher than it would have been otherwise" as the economy rebounds post-shutdown."

"Mark Hamrick, Bankrate's senior economic analyst, said in an email that Americans will have to wait until next year to get more clarity on the economy's performance. He added that there will also be some benefits for Americans from what President Donald Trump called his "one big beautiful" bill, including federal income tax refunds. "The good news is that the outlook for growth is improving as we enter 2026, as noted also recently by the Federal Reserve," he"

Real GDP rose at an annualized 4.3% in the third quarter, exceeding the 3.3% expectation and outpacing the 3.8% growth in the second quarter. Growth was driven by consumer spending, exports, and government spending, while investment fell. The economy faced headwinds in 2025 from tariff effects on imports and a first-quarter contraction. A prolonged government shutdown likely lowered GDP during its duration and may cause temporarily higher growth as activity rebounds. Recent labor and inflation data show higher unemployment and cooling inflation. Analysts expect clearer signals on economic performance entering 2026 and note potential benefits from federal tax legislation.

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