US GDP accelerates to 3.4% in the third quarter, giving Trump a messaging boost on eve of midterms

The US economy grew at a robust pace in the third quarter, driven by investment, consumer spending, and government spending.

Gross domestic product increased at a 3.4% annualized rat e, according to an initial estimate released Thursday by the US Bureau of Economic Analysis, beating economists' expectations of 3.1% and marking an acceleration from the second quarter's 2.2% growth.

The artificial intelligence build-out was the main engine, with business investment surging 12.7%. Consumer spending grew 3.8%, matching the rate in Q2 and the strongest since the end of 2024. The Conference Board reported this week that consumer confidence is improving, despite sticky inflation and higher gas prices .

Third quarter growth was partly offset by a decrease in exports . Imports, which are subtracted in the calculation of GDP, increased.

The release is the final major report on the economy ahead of next week's midterm elections, as President Trump and Republicans deliver their closing message.

The White House was quick to tout the news. Trump told reporters before heading to a campaign rally, "We had a great morning from the standpoint of GDP." The White House added on X that it was a "'MAJOR BOOST FOR THE ECONOMY.'

Liz Ann Sonders, chief investment strategist at Charles Schwab, added on X that it was "another strong Q for capex. But she pointed out that growth "continues to be somewhat offset by a drag from net exports," noting that the AI build-out "is very import-driven."

Heather Long, chief economist at Navy Federal Credit Union, wrote on X , "Consumption was still strong. But business investment is turbocharging the U.S. economy."

Molly Moorhead is economics editor at Yahoo Finance.