The Commerce Department reported U.S. economic growth reached an annualized 3.4% in the third quarter
U.S. real GDP grew at a 3.4% annual rate in the third quarter, while September inflation accelerated, Commerce Department data showed. The personal consumption expenditures price index rose 0.5% monthly and 3.6% annually; core PCE inflation was 3.1% annually. Both exceeded the Fed’s 2% target. Heather Long, Navy Federal Credit Union’s chief economist, called inflation the economy’s “Achilles heel.”
More context
U.S. economic growth accelerated faster than expected to an annualized 3.4% in the third quarter, up from 2.2% in the second, while inflation also rose in September. The Commerce Department reported that the personal consumption expenditures (PCE) price index increased 0.5% for the month and 3.6% from a year earlier. Excluding food and energy, core PCE rose 0.3% monthly and 3.1% annually; both measures were above the Federal Reserve’s 2% target. The Bureau of Economic Analysis said investment, consumer and government spending contributed to GDP growth, partly offset by declining exports. Heather Long, chief economist at Navy Federal Credit Union, said the AI investment surge was adding almost a full percentage point to growth and called inflation the economy’s “Achilles heel.”
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Reporting
- The Hill — US GDP grew by 3.4 percent in third quarter amid AI investment boom
- Kitco News — Gold falls toward $4,000 as core PCE rises, U.S. growth accelerates - Kitco AM Report | Kitco News
- The Korea Times — US economy posts strong growth, inflation stubbornly high in challenge to Trump - The Korea Times
- Bloomberg — US Economy Grows a Faster-Than-Expected 3.4%, Most in a Year
- CNBC — PCE inflation report September 2026:
- crypto.news — Bitcoin price reclaims $80K as US GDP beats forecasts
- themortgagepoint.com — U.S. GDP Records Better-Than-Expected Increase - The MortgagePoint
Verifier’s note
Crypto.news, The Hill, Kitco News, The MortgagePoint, The Korea Times, Bloomberg, and CNBC all report that third-quarter U.S. growth was stronger than expected. The MortgagePoint cites CNBC, while The Korea Times carries AFP wire copy.