The U.S. economy, measured by real gross domestic product (GDP), expanded at an annual rate of 4.4 percent in the third quarter of 2025 (July, August, and September). This represents an upward revision of 0.1 percentage point from the initial estimate and follows a 3.8 percent increase in the second quarter of 2025. This updated report replaced a previously scheduled release due to a government shutdown.
Key Drivers of Growth
Increases in consumer spending, exports, government spending, and investment contributed to the rise in real GDP. Imports, which subtract from GDP calculation, decreased during this period. Compared to the second quarter, the acceleration in real GDP was driven by upturns in investment, exports, and government spending, alongside an acceleration in consumer spending.
Revisions and Industry Performance
The upward revision to real GDP primarily reflected stronger exports and investment, partially offset by a downward adjustment to consumer spending. Imports were also revised up. From an industry perspective, private services-producing industries saw a 5.3 percent increase in real value added, and private goods-producing industries increased by 3.6 percent. This was slightly offset by a 0.3 percent decrease in real value added for the government sector.
Price and Income Data
- The price index for gross domestic purchases rose 3.4 percent in the third quarter.
- The personal consumption expenditures (PCE) price index increased 2.8 percent.
- The PCE price index, excluding food and energy, increased 2.9 percent.
- Real gross domestic income (GDI) increased 2.4 percent.
- Corporate profits from current production rose by $175.6 billion in the third quarter, an upward revision of $9.5 billion.