The US economy grew surprisingly strongly in the summer. That increased in the third quarter Gross domestic product (GDP) annualized by 4.3 percent. The Commerce Department announced this in an initial estimate in Washington. In the second quarter, GDP increased by 3.8 percent. Economists had expected an average growth of 3.3 percent for the third quarter.
The data was supposed to be published weeks ago. Since government business was largely suspended for 43 days in a so-called shutdown in the fall due to the budget dispute, this only happened now.
OECD raises forecast
Consumer spending by private households also rose significantly in the summer quarter. In the months July to September they increased by 3.5 percent. A special effect also contributed to this: the tax credits for the purchase of electric cars expired on September 30th; Previously there were significantly more purchases. In addition, the tariffs imposed by US President Donald Trump ensured that fewer goods were imported. This also contributed to economic growth – as well like the AI boom in companies.
The Organization for Economic Cooperation and Development (OECD) raised its forecast for US economic growth for the year ending to 2.0 percent. An increase of 1.7 percent is therefore expected for 2026.
Many private households have to continue saving
According to a study by Bank of America However, the positive economic figures are not noticeable in many households. This year, people in low-income households are living paycheck to paycheck and are spending larger portions of their budgets on groceries rather than dining out. Their spending on clothing, airlines and hotels also fell.
According to Boston College economics professor Brian Bethune, private household budgets are tight: “The average household can barely stay afloat.” The positive development of the US economy will not continue in the current fourth quarter, said Bethune.
