Updated Oct 29, 2026, 9:07 AM ET: clarified that the 2.1% PCE figure is a third-quarter annualized rate and added September's year-over-year PCE inflation from BEA.
WASHINGTON, DC, Oct. 29, 2026 —
The U.S. economy grew at an annual rate of 3.4 percent from July through September, according to the advance estimate of third-quarter gross domestic product released Thursday at 8:30 a.m. Eastern time by the U.S. Bureau of Economic Analysis (BEA). Real GDP grew 2.2 percent in the second quarter.
"The U.S. economy grew at a 3.4% annualized rate in Q3," the agency posted on X.
What drove the growth
- Investment. BEA says investment rose, mainly from businesses building up inventories (led by wholesale trade and manufacturing) and buying equipment, especially computers and related gear.
- Consumer spending. Spending on both services and goods went up. Health care, mainly hospitals and outpatient care, and restaurants and lodging led services. Prescription drugs led goods.
- Government spending. Federal spending led the increase in government spending.
- Trade. Exports fell, led by petroleum products, while imports rose. Imports are subtracted when GDP is calculated.
Real final sales to private domestic purchasers, the combined total of consumer spending and private fixed investment, grew 4.9 percent, up from 4.6 percent in the second quarter, BEA says.
Inflation: slower in the quarter, higher than a year ago
The personal consumption expenditures (PCE) price index rose at a 2.1 percent annual rate in the third quarter, down from 5.0 percent in the second quarter, according to the GDP release. Excluding food and energy, the PCE index rose at a 2.5 percent annual rate, down from 3.3 percent. The broader price index for gross domestic purchases rose 3.0 percent, down from 5.6 percent.
Those quarterly figures are annualized rates. Measured year over year, inflation was higher: BEA's separate Personal Income and Outlays report for September, also released Thursday, says the PCE price index rose 3.6 percent from September 2025, and 3.1 percent excluding food and energy. From August to September, the PCE price index rose 0.5 percent, and 0.3 percent excluding food and energy.
In a separate release Thursday, BEA said Americans' incomes rose 0.2 percent in September and spending grew 0.5 percent, both in current dollars, and that people saved 3.8 percent of their after-tax income (BEA on X).
What comes next
This is the first of three estimates. BEA's second estimate of third-quarter GDP, along with corporate profits, is scheduled for Nov. 25, 2026, at 8:30 a.m. Eastern time.
Launchpad Digital has asked the Bureau of Economic Analysis for comment and will update this story when it responds.
Those are the facts, directly from the source.
Sources: U.S. Bureau of Economic Analysis, GDP (Advance Estimate), 3rd Quarter 2026 (Oct. 29, 2026); @BEA_News on X (Oct. 29, 2026).
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