The U.S. economy expanded at a faster pace in the third quarter of 2025 than previously reported, driven by stronger investment and exports, according to an updated estimate released by the U.S. Bureau of Economic Analysis.
Real gross domestic product increased at an annual rate of 4.4% from July through September, up from an initial estimate of 4.3% and faster than the 3.8% growth recorded in the second quarter, the BEA said in its revised report. The update replaces a previously scheduled release that was delayed by a government shutdown.
According to the BEA, the third-quarter expansion was supported by gains in consumer spending, business investment, exports and government spending, while imports declined. Because imports are subtracted from GDP, the decrease added to overall growth.
The 0.1 percentage point upward revision from the initial estimate primarily reflected stronger exports and higher investment, partially offset by a downward revision to consumer spending. Import figures were revised higher, largely based on updated international trade data.
Compared with the prior quarter, the faster pace of growth reflected rebounds in investment and exports, increased government spending and an acceleration in consumer spending. Imports fell less sharply than they did in the second quarter.
A closely watched measure for equipment finance and capital markets, real final sales to private domestic purchasers, which combines consumer spending and private fixed investment, rose at a 2.9% annual rate. That figure was revised slightly lower from the earlier estimate but still points to steady underlying private-sector demand.
From an industry standpoint, private services-producing industries led growth, with real value added rising 5.3%. Private goods-producing industries increased 3.6%, while real value added for government edged down 0.3%.
Inflation indicators were unchanged from earlier estimates. The price index for gross domestic purchases increased 3.4%, while the personal consumption expenditures price index rose 2.8%. Core PCE inflation, which excludes food and energy and is closely monitored by the Federal Reserve, increased 2.9%.
Corporate profitability also improved. Profits from current production rose by $175.6 billion in the third quarter, an upward revision of $9.5 billion from the prior estimate, signaling improved earnings conditions for U.S. companies.
The BEA said its next GDP release, covering the advance estimate for the fourth quarter and full year 2025, is scheduled for Feb. 20, 2026. Beginning with that release, the agency will update the format of its GDP reports to emphasize interactive online data tables.
The original report is available from the Bureau of Economic Analysis.
