Real gross domestic product increased at an annual rate of 4.3% in the third quarter of 2025, according to the initial estimate released by the U.S. Bureau of Economic Analysis. In the second quarter, real GDP increased 3.8%.
The increase in real GDP in the third quarter reflected increases in consumer spending, exports, and government spending that were partly offset by a decrease in investment.
Personal consumption added 2.39 percentage points (pp) to growth, following a 1.68 pp addition in the second quarter of 2025. The increase in PCE was driven by services (1.74 pp) such as those in household consumption expenditure: healthcare (0.76 pp), other services (0.40 pp), and recreational services (0.17 pp). Goods added (0.66 pp) to real GDP, with durable goods adding (0.12 pp) driven by recreational goods and vehicles adding (0.33 pp). Nondurable goods added (0.54 pp) with clothing and footwear (0.12 pp) and food & beverages purchased for off-premises consumption (0.10 pp).
Business investment subtracted -0.02 pp to real GDP. Non-residential fixed investment added 0.40 pp, with structures subtracting 0.19 pp. Equipment and information processing equipment added 0.29 pp and 0.16 pp, respectively. Transportation equipment subtracted 0.0.03 pp, and other equipment added 0.13 pp. Residential fixed investment subtracted 0.21 pp.
Government spending added 0.39 pp to real GDP. The Federal government added 0.19 pp to real GDP and state and local added 0.20 pp.
Net exports added 1.59 pp to growth. Exports added 0.92 pp after subtracting -0.02 pp in the second quarter of 2025, while imports added 0.67 pp to real GDP after adding 5.03 pp in the second quarter of 2025.
Read the BEA release.
