Tue, 23 Dec 2025

Tue, 23 Dec 2025 US economy grows at fastest pace in two years

Strong consumer spending helps the US economy grow at a faster rate than expected.

* US economy grew at an annual rate of 4.3% in Q3, beating expectations and marking its strongest growth in two years.
* Consumer spending rose at an annual rate of 3.5%, with households spending more on healthcare services despite a slowing job market.
* Exports surged by 7.4%, rebounding from a sharp drop earlier in the year.
* Government spending also increased, driven by defence outlays.
* Despite these gains, analysts warn that rising prices could make it difficult to sustain this strong pace of growth.
* The personal consumption expenditures price index ticked up to 2.8% over Q3, with some lower and middle-income households facing higher costs.
* Some recent surveys and credit card data suggest that households may be reining in their spending due to weak labour market, stagnant real incomes, and exhaustion of pandemic-era excess savings.
* The UK economy has been impacted by the Jaguar Land Rover cyber-attack and Budget uncertainty.
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