Economy Grew Faster Than Expected In Third Quarter

The U.S. economy grew much faster than forecasters had expected in the third quarter, thanks to a drop in imports and a surge in consumer spending.

The inflation-adjusted Gross Domestic Product grew at an annual rate of 4.3% in the third quarter, up from 3.8% growth in the second, the Bureau of Economic Analysis said Tuesday. That blew past the 3.2% growth forecasters had expected, and was well above the 2.6% average annual growth rate over the previous four years.

The surge in economic growth partly reflected a decrease in imports, which are subtracted from the GDP, and have declined as a result of President Donald Trump’s tariff campaign.

Other parts of the economy accelerated, including exports, government spending, and the all-important rate of consumer spending. Consumer spending is the largest factor in the GDP and rose 3.5%. The economy grew rapidly in the second half of the year, after shrinking in the first quarter due to a surge in imports aimed at avoiding the tariffs.

The GDP report had been scheduled to be released in October, but was delayed by the government shutdown. The BEA will revise its GDP estimate and release a final tally next month.