U.S. GDP grew at a 4.4% annual rate in Q3 2025, driven by consumer spending and AI investment, but job growth slowed amid persistent high living costs.

The U.S. economy grew at a 4.4% annual rate in the third quarter of 2025, revised slightly upward from 4.3%, marking the fastest pace in two years and exceeding second-quarter growth of 3.8%. Strong consumer spending, rising exports, and increased business investment—particularly in AI—drove the expansion, while imports declined. Inflation remained stable, with the core PCE index at 2.9%. Despite robust GDP figures, job growth has slowed to about 28,000 per month since March, and many Americans report financial strain, reflecting a “K-shaped” recovery where wealthier households benefit more, leaving middle- and lower-income families largely unaffected.