NEW YORK: US economic growth in the third quarter came in at 4.3 per cent on an annualised basis, easily topping expectations, according to Commerce Department data released on Tuesday.

The report, which also showed an acceleration in inflation, provides reassurance about the world’s largest economy after other recent data showing a weakening labor market. It comes as worries have moderated over President Donald Trump’s tariffs and as large tech companies advance massive investments to build new artificial intelligence infrastructure.

The gross domestic product report – delayed for nearly two months due to a government shutdown – reflects increases in consumer spending, exports and government spending, partially offset by a decrease in investment, according to the department’s Bureau of Economic Analysis.

The reading, an initial estimate expected to be updated in early 2026, marks the highest GDP in two years. Analysts had expected 3.2pc growth, according to consensus estimates from MarketWatch and Trading Economics.

The report also showed the price index for domestic purchases rose 3.4pc, a much higher inflation reading compared with 2.0 percent in the second quarter.

The data suggest faster growth and higher inflation than markets had expected — potentially changing the calculus for upcoming US monetary policy decisions.

Trump pointed to the report as evidence that the “Trump Economic Golden Age is FULL steam ahead,” the product of a “genius” policy on tariffs and “NO INFLATION,” disregarding line-item aspects of the data showing otherwise.

Other recent data has shown a weakening job market that has prompted the Federal Reserve to cut interest rates at the last three meetings, viewing the employment picture as its prime concern even as inflation has lingered above 2pc.

Published in Dawn, December 24th, 2025