US real GDP rises by 4.3% annual rate in Q3 2025: BEA initial estimate

Due to the recent government shutdown, this initial Q3 2025 report replaces the release of the advance estimate originally scheduled for October 30 and the second estimate originally scheduled for November 26.

The Q3 increase in real GDP reflected increases in consumer spending, exports and government spending that were partly offset by a decrease in investment. Imports, which are a subtraction in the calculation of GDP, decreased, a BEA release said.

Compared to Q2 2025, the acceleration in real GDP in Q3 reflected a smaller decrease in investment, an acceleration in consumer spending and upturns in exports and government spending. Imports decreased less in Q3.

Real final sales to private domestic purchasers, the sum of consumer spending and gross private fixed investment, increased by 3 per cent in Q3, compared with an increase of 2.9 per cent in Q2.

The price index for gross domestic purchases increased by 3.4 per cent in Q3 2025 compared with an increase of 2 per cent in Q2. The personal consumption expenditures (PCE) price index increased by 2.8 per cent compared with an increase of 2.1 per cent in Q2.

Excluding food and energy prices, the PCE price index increased by 2.9 per cent in Q3 2025 compared with an increase of 2.6 per cent in Q2.

Real gross domestic income (GDI) increased by 2.4 per cent in Q3 compared with an increase of 2.6 per cent (revised) in Q2 2025.

The average of real GDP and real GDI increased by 3.4 per cent in the quarter compared with an increase of 3.2 per cent (revised) in the preceding quarter.

Profits from current production increased by $166.1 billion in Q3 2025 compared with an increase of $6.8 billion in Q2.

ALCHEMPro News Desk (DS)