In the third quarter of 2025, the U.S. economy grew at an annualized rate of 4.3%, beating economists’ forecasts and marking the fastest growth in about two years. This stronger-than-expected increase was driven mainly by higher consumer spending, especially on healthcare and computers, and a rise in exports, while imports fell, improving the trade balance. However, consumer confidence fell to its second-lowest level in five years, and inflation slowed to about 2.7%, meaning that rising prices still affect household budgets.
How Consumer Spending Continued to Support Growth
At the same time, recent data showed U.S. retail sales climbed more than expected in November 2025, suggesting that consumer spending might continue to support economic growth into the fourth quarter. Economists also noted ongoing challenges, such as higher living costs for lower-income households, even though overall retail activity improved.
How the U.S. Economy Affects Global Growth
Meanwhile, the World Bank’s latest global forecast projects that the U.S. economy will remain a key driver of global growth in 2026, though overall world growth is expected to slow slightly due to trade barriers and weaker demand in some countries.
