U.S. Third-Quarter Growth Revised Higher to 4.4% as Exports and Investment Strengthen

An updated government estimate shows faster-than-expected economic growth in the third quarter, alongside a notable upward revision to corporate profits.

By yourNEWS Media Newsroom

The U.S. economy expanded at a faster pace than initially estimated in the third quarter, supported by stronger exports and business investment, according to revised data released Thursday by the Bureau of Economic Analysis.

Gross domestic product grew at an annualized rate of 4.4% in the July-through-September period, up from a previously reported 4.3% pace and marking the fastest quarterly expansion since the third quarter of 2023, the agency said in its updated estimate. Economists surveyed by Reuters had expected the growth rate to remain unrevised. The economy expanded at a 3.8% rate in the second quarter.

The upward revision primarily reflected stronger exports and higher business investment. Imports, which subtract from GDP in the national accounts, were also revised higher. Consumer spending and a narrower trade deficit remained the primary drivers of overall growth during the quarter.

Consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased at a 3.5% annualized rate in the third quarter. However, a key measure of underlying domestic demand—final sales to private domestic purchasers—was revised down to a 2.9% growth rate from the previously estimated 3.0%.

Some economists said recent economic activity has taken on what they described as a “K-shaped” pattern, with higher-income households and large corporations contributing disproportionately to growth. They attributed this divergence to policy conditions under President Donald Trump, including import tariffs that have raised costs across parts of the economy.

According to those assessments, gains in the stock market and persistently high home prices have helped insulate higher-income households from inflation, while lower- and middle-income households face fewer options to adjust spending. Large corporations, economists said, generally have the financial capacity to absorb higher costs associated with import duties.

In contrast, small businesses have faced tighter margins and continued pressure from higher costs, along with reduced access to low-cost labor amid stricter immigration enforcement, according to the same analysts.

Corporate profitability was also revised higher. Profits from current production increased at a $175.6 billion annual rate in the third quarter, an upward revision of $9.5 billion from the prior estimate, the Bureau of Economic Analysis reported.