US Q3 GDP Rises More Than Expected, Consumption, Inflation Jumps

08:54 AM EST, 12/23/2025 (MT Newswires) -- US economic growth, measured by gross domestic product, rose by 4.3% in Q3 after a 3.8% increase in the previous quarter, faster than the 3.3% gain expected in a survey compiled by Bloomberg.

Personal consumption expenditures increased by 3.5% after a 2.5% gain, above a 2.7% increase expected.

There were also positive contributions from nonresidential fixed investment, net exports and government spending that offset negative contributions from residential fixed investment and the change in private inventories, though the drag from inventories was much smaller than in the previous quarter.

The GDP price index rose by 3.8% after a 2.1% gain in the second quarter, well above a 2.7% gain expected, while the overall PCE price and core PCE price measures also rose faster than in the previous quarter.

The quarterly measure of gross domestic product, or GDP, is released by the US Bureau of Economic Analysis at three stages, with the advance reading about a month after the end of a quarter, followed by second and third readings for the same quarter two and three months after quarter-end.

The data are broken down by each of the GDP components: consumption, fixed investment (which includes residential and nonresidential investment and inventories), government spending, and net exports (exports minus imports). The report also includes prices measures for the overall reading and the categories.

Strong GDP growth is a positive for stocks, but a negative for bonds, especially if it is accompanied by sharp inflation gains.

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