WASHINGTON (dpa-AFX) - Economic growth in the U.S. exceeded economist estimates in the third quarter of 2026, according to a report released by the Commerce Department on Thursday.
The Commerce Department said real gross domestic product shot up by 3.4 percent in the third quarter after jumping by 2.2 percent in the second quarter. Economists had expected GDP to surge by 3.1 percent.
The stronger-than-expected GDP growth reflected increases in investment, consumer spending, and government spending that were partly offset by a decrease in exports.
The report also showed an increase in imports, which are a subtraction in the calculation of GDP.
Michael Pearce, Chief U.S. Economist at Oxford Economics, said the strong GDP growth 'reflects the continuation of the rampant AI boom while other parts of the economy strengthened.'
'We expect economic growth to remain above consensus next year but to be increasingly reliant on a capex boom, driven by AI, defense, and a supportive inventory cycle,' he added.
The Commerce Department noted the acceleration in the pace of GDP growth compared to the previous quarter primarily reflected an acceleration in investment and an upturn in government spending.
Meanwhile, the report showed a downturn in exports, while imports increased more in the third quarter than in the second quarter.
The personal consumption expenditures (PCE) price index jumped by 2.1 percent in the third quarter after surging by 5.0 percent in the second quarter, the Commerce Department said.
The report also said the core PCE price index, which excludes food and energy prices, shot up by 2.5 percent in the third quarter after jumping by 3.3 percent in the second quarter.
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