URGENT UPDATE: The US economy has skyrocketed, with real GDP rising at an astounding annualized rate of 4.3% in the third quarter of 2025, far exceeding the anticipated 3.3% growth. This unexpected surge follows a 3.8% increase in the second quarter and a contraction earlier this year, revealing a dynamic shift in economic momentum.
Mark Hamrick, Bankrate’s senior economic analyst, emphasized that this robust growth provides a glimmer of hope amid previous economic challenges. “The good news is that the outlook for growth is improving as we enter 2026,” Hamrick stated, citing positive factors influencing the economy, including advancements in artificial intelligence and strong consumer spending.
This latest report from the Bureau of Economic Analysis highlights the resilience of the US economy, particularly in light of recent turbulence. Earlier this year, the economy faced headwinds from tariff announcements, which contributed to a decline in GDP during the first quarter. Furthermore, the recent government shutdown could also impact fourth-quarter estimates, with the Congressional Budget Office indicating that growth may be temporarily boosted as recovery occurs post-shutdown.
The Bureau of Labor Statistics has also released concerning data, showing unemployment at its highest level since September 2021, while inflation has unexpectedly cooled. These mixed signals underscore the complexity of the current economic landscape.
As we look ahead, the Bureau of Economic Analysis is set to release an updated GDP estimate for Q3 on January 22, further clarifying the trajectory of economic growth. Hamrick notes that a key question remains—will the job market stabilize or improve in the coming months? The resilience of consumers, who are crucial to driving the economy, will be put to the test.
WHAT’S NEXT: As the economy navigates these challenges, analysts urge consumers to stay informed. The Federal Reserve, led by Chair Jerome Powell, has expressed cautious optimism about solid growth in the upcoming year, driven by evolving technologies and consumer behavior.
This situation is developing, and updates are expected as new data emerges. Stay tuned for more insights into how these economic changes will impact your finances and the broader market.
