The U.S. economy grew more than expected in the third quarter, by 3.4%

The United States economy grew at an annualized rate of 3.4% in the third quarter of 2026, exceeding analysts’ estimates, while inflation accelerated in September, maintaining pressure on the Federal Reserve (Fed).

According to data released Thursday by the Department of Commerce, gross domestic product (GDP) growth exceeded the forecast of 3.1% and the 2.2% growth recorded in the previous quarter. This is the first time in the past year that the annualized pace of economic expansion has exceeded 3%.

At the same time, the personal consumption expenditures (PCE) price index, the Fed’s preferred indicator for assessing inflation, rose by 0.5% in September compared with August, the largest monthly increase since March. The annual inflation rate reached 3.6%, well above the central bank’s 2% target. Core inflation, which excludes food and energy, stood at 3.1% annually.