US GDP for Q3 2026 comes in stronger at 4.3% vs 3.3% estimate.

The U.S. Labor Department reported a GDP growth of 4.3% for Q3 2025, significantly exceeding the market estimate of 3.3%. This growth is primarily driven by strong consumer spending, which contributed 2.4 percentage points to the GDP figure. Exports also performed well, adding 0.9 percentage points to the growth. The GDP deflator rose to 3.7%, surpassing the expected 2.7%, while core PCE remained stable at 2.9%. Notably, consumer spending rose 3.5% year-over-year, indicating strong economic confidence. Conversely, private investment was a small concern, subtracting 0.02 percentage points, suggesting caution among businesses regarding capital expenditures. Overall, the U.S. economy remains robust compared to many global peers, and the strength of consumer spending as we enter the final quarter will be a key indicator for investors to monitor amid inflation trends.