Officials reported that the United States economy expanded at an annualized rate of four point three percent in the third quarter of two thousand twenty-five, markedly exceeding economists’ expectations and representing the fastest pace of growth in roughly two years.

This figure, released by the Department of Commerce, came in well above forecasts of around three percent and reflected broad economic momentum over the summer months.

Consumer spending — which accounts for about seventy percent of U.S. economic activity — was a principal driver of the acceleration, rising at an annual rate of three point five percent, up from earlier quarters.

Exports also grew significantly, while government spending contributed to the overall expansion.

Investment in intellectual property, including sectors related to artificial intelligence, continued to support business activity.

Despite the headline strength, underlying data revealed mixed signals in other parts of the economy.

Private business investment declined modestly in some categories, and the labor market showed signs of cooling, with slower job growth and a moderate rise in the unemployment rate.

At the same time, inflation pressures persisted, with the core personal consumption expenditures price index remaining above the Federal Reserve’s two percent target.

These dynamics have raised questions among economists about the sustainability of the recent growth surge and the timing of future monetary policy adjustments.

President Donald Trump publicly credited recent tariff policies, increased government and consumer spending, and stronger exports for the robust growth, describing the data as evidence of enduring economic strength.

However, policymakers and analysts emphasised that while the third-quarter results were a positive signal, ongoing challenges — including inflation, labor market shifts, and geopolitical uncertainties — will shape broader economic performance in the months ahead.

The economy’s performance in the third quarter marks a notable juncture as the government continues to navigate fiscal and monetary policy choices against a backdrop of persistent inflation and evolving labor conditions, even as consumers remain a central force in driving demand.