The US economy was much stronger than expected in the third quarter

Originally Published: 23 DEC 25 08:33 ET

Updated: 23 DEC 25 09:05 ET

By Elisabeth Buchwald, CNN

(CNN) — An initial reading of third-quarter gross domestic product showed the US economy expanded at an inflation-adjusted annualized rate of 4.3%, a far faster pace than the 3.8% recorded in the second quarter, according to Commerce Department data released Tuesday. That’s the fastest growth rate in two years.

An acceleration in consumer spending, up 3.5% from 2.5% in the second quarter, and exports, up 8.8% from -1.8% in the second quarter, were the main contributors to the third-quarter GDP reading.

Though very backward-looking, given the release was delayed due to the government shutdown, the report likely means the Federal Reserve has less need to cut rates to support the economy when it reconvenes next month.

Stock futures were little changed after the data release. Dow futures were down 40 points. S&P 500 futures fell 0.06% and Nasdaq 100 futures ticked down by 0.08%.

This is a developing story and will be updated.

The-CNN-Wire
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