US economy grew at a 3.4% annual rate in the third quarter

The US economy expanded at an annual rate of 3.4% from July through September, according to the Bureau of Economic Analysis' first estimate for the third quarter of 2026. Growth accelerated from a revised 2.2% annual rate in the second quarter.

Investment, consumer spending and government spending contributed to the increase, while lower exports offset part of the gain. Imports rose and are subtracted when gross domestic product is calculated.

What an annual rate means

The 3.4% figure is a seasonally adjusted annual rate. It describes how fast the economy would grow over a full year if the quarter's pace continued; it is not a statement that output increased 3.4% in three months.

The BEA said real final sales to private domestic purchasers — a measure combining consumer spending and private fixed investment — rose at a 4.9% annual rate. That was slightly faster than in the second quarter.

Inflation measures cooled

The price index for gross domestic purchases increased at a 3.0% annual rate, down from 5.6% in the prior quarter. The personal consumption expenditures price index rose 2.1%, while the version excluding food and energy rose 2.5%.

Those figures show slower price growth, not falling prices across the economy. Household experiences can also differ depending on housing, food, energy and medical costs.

The estimate can change

This is the advance estimate and is based on data that remain incomplete. The BEA is scheduled to publish a second estimate on November 25, along with corporate-profit information. Revisions are a normal part of national economic accounting, so the current 3.4% figure should be treated as the best available estimate rather than a final count.