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[BUSINESS] · United States · 84 sources

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US economy grows 3.4% in Q3 driven by AI investment and spending

The United States economy grew at a 3.4% annualized rate in the third quarter of 2026, according to advance estimates from the Bureau of Economic Analysis. This represents an acceleration from the 2.2% growth recorded in the second quarter and exceeded economist forecasts of approximately 3.1% to 3.2%.

Key drivers of this expansion included strong consumer spending, which grew at a 3.8% annualized pace, and a significant surge in business investment. Specifically, investment in information processing equipment rose 37.4%, fueled largely by an artificial intelligence boom as companies build out data centers and technology infrastructure. However, residential investment fell by 3.3% due to high mortgage rates.

Economic data also highlighted persistent inflationary pressures. The personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred gauge, rose 3.6% from a year earlier in September, up from 3.4% in August. Core PCE inflation, which excludes volatile food and energy prices, rose 3.1% year over year. These figures arrive as the Federal Reserve maintains the benchmark interest rate in the 3.75% to 4.00% range, with officials noting that inflation remains elevated.

Entities

Bureau of Economic Analysis · Commerce Department · Federal Reserve · Kevin Warsh · United States · United States Department of Commerce

Claims

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Sources

U.S. GDP grows more in Q3 [econbrowser.com]