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US economy grew at 3.4% annualized rate in 3rd quarter, government data shows

US economy grew at 3.4% annualized rate in 3rd quarter, government data shows

Summary

U.S. gross domestic product grew at a 3.4% annualized rate in the third quarter of 2026, up from 2.2% in the second quarter, Commerce Department data showed. Growth came as inflation remained elevated: prices rose 3.7% from a year earlier in September, while the Federal Reserve held interest rates steady after raising them in September.

Key Facts

  • Third-quarter economic growth was 3.4% at an annualized rate.
  • Growth accelerated from 2.2% in the second quarter and exceeded the 2.5% rate in the first quarter.
  • U.S. prices rose 3.7% in September compared with a year earlier, above the Federal Reserve’s 2% target.
  • The Federal Reserve raised interest rates by a quarter percentage point in September, its first increase in three years.
  • The Fed left interest rates unchanged on Wednesday as officials awaited more economic data.
  • Spending on artificial intelligence chips and data centers helped support economic growth in recent quarters.
  • Hiring continued to grow more slowly, while unemployment remained low by historical standards.
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