U.S. economy grew 4.4% in the third quarter, GDP shows. It showed little sign of slowing.

By Jeffry Bartash

Consumer spending and business investment drive robust growth

The U.S. economy has been growing faster than expected despite a lot of turbulence caused by tariffs and lingering inflation.

The economy expanded at zippy 4.4% annual pace in the third quarter of 2025, an updated estimate showed, to keep the U.S. on track to score the fifth straight year of above-average growth.

Gross domestic product, the official scorecard of the economy, was revised up from the original 4.3% reading, the government said Thursday. It was the strongest quarter of growth in two years.

The economy's upper speed limit is generally seen to be around 1.8%. Yet growth is likely to easily top 2% in 2025 for the fifth year in a row.

The final piece of the puzzle, fourth-quarter GDP, won't be available for another month. Early estimates point to another healthy rate of growth, but the record 43-day shutdown in October and November could depress the final result.

Key details: Consumer spending rose at a revised 3.5% pace in the third quarter. The three-month period ran from July to September.

Business investment in equipment and software was also strong, reflecting a growing appetite for technology such as artificial intelligence.

Corporate profits surged after two quarters of weak or negative results. Adjusted earnings before taxes shot up 4.5% in the July-to-September period,

Big picture: The U.S. economy showed a big spurt of growth in the spring and summer despite higher U.S. tariffs and stubborn inflation.

Part of the growth was exaggerated by consumers and businesses speeding up purchases of imported goods to skirt higher U.S. tariffs.

Yet even if tariff front-running is set aside, the economy has shown lots of resilience. Many analysts predict another year of above-average growth.

Looking ahead: The economy was "on a firm footing heading into the end of last year," said Michael Pearce, chief U.S. economist at Oxford Economics.

Market reaction: The Dow Jones Industrial Average DJIA and S&P 500 SPX were set to rise in Thursday trading.

-Jeffry Bartash

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01-22-26 0920ET