US Economy Records Fastest Growth in Two Years as Spending and Exports Surge

The United States economy accelerated sharply over the three months to September, recording its strongest growth rate in two years as consumer spending rose and exports increased. New figures show the world’s largest economy expanded at an annual rate of 4.3 percent, up from 3.8 percent in the previous quarter and well above most expectations.

The stronger performance was largely driven by resilient household spending, with Americans continuing to open their wallets despite higher prices and tighter financial conditions. Retail activity, travel, and everyday services all contributed to the momentum, underlining the continued importance of consumer confidence in sustaining economic growth.

Exports also played a key role, helping offset volatility in trade flows caused by shifting policies and global uncertainty. While imports and exports have seen sharp swings in recent months, the latest data suggests the broader economy has remained surprisingly stable beneath the surface.

The report was released later than planned due to a US government shutdown, but it offers a clearer picture of how the economy has been navigating a challenging policy environment. Changes to trade rules, adjustments in immigration policy, ongoing inflation pressures, and cuts to government spending have all weighed on certain sectors, creating uneven conditions across industries.

Despite these headwinds, the underlying strength of the economy has exceeded many forecasts. Businesses have continued investing, employment levels have remained relatively solid, and demand has held up better than feared. Economists say this combination has helped prevent a sharper slowdown, even as borrowing costs stay elevated.

However, analysts caution that risks remain. Persistent inflation, geopolitical tensions, and uncertainty around future policy decisions could still dampen growth in the months ahead. For now, though, the latest figures suggest the US economy has entered the second half of the year with renewed momentum, reinforcing its position as one of the strongest performers among major global economies.