US GDP accelerates to 3.4% in the third quarter

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.

Third-quarter growth was partly offset by a decrease in exports. Imports, which are subtracted in the calculation of GDP, increased. 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 release is the final report on the economy ahead of next week's midterm elections, in which economic and cost-of-living issues are front and center.

Molly Moorhead is economics editor at Yahoo Finance.