Consumer spending pushes US economy up 4.4% in third quarter, fastest in two years

WASHINGTON (AP) — Powered by strong consumer spending, the U.S. economy grew at the fastest pace in two years from July through September, the government said Thursday in a slight upgrade of its first estimate.

America’s gross domestic product — the nation’s output of goods and services — rose at a 4,4% annual pace in the third quarter, the Commerce Department reported Thursday, up from 3.8% in the April-June quarter and from the 4.3% growth the department initially estimated. The economy hasn’t grown faster since third-quarter 2023.

Consumer spending, which accounts for 70% of U.S. GDP, grew at a healthy 3.5% pace. A surge in exports and a drop in imports also contributed to robust third-quarter growth.

The economy has remained resilient despite uncertainty caused by President Donald Trump’s policies.

Employers have added 28,000 jobs a month since March. In the 2021-2023 hiring boom that followed COVID-19 lockdowns, by contrast, they were creating 400,000 jobs a month. Still, the unemployment rate remains low at 4.4%, suggesting a no-hire, no-fire labor market with companies hesitant to bring on new employees but reluctant to let go of the ones they have.