Consumer spending pushes US economy up 4.4% in third quarter, fastest in two years

Associated Press (AP)CenterEN 2 min read 100% complete by By PAUL WISEMANJanuary 22, 2026 at 02:53 PM

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The U.S. economy grew at a 4.4% annual pace in the third quarter of 2025, the fastest rate in two years, according to the Commerce Department. This growth was primarily driven by strong consumer spending, which accounts for 70% of the U.S. GDP, increasing at a 3.5% pace. Increased exports and decreased imports also contributed to the rise. Despite the strong GDP growth, many Americans remain dissatisfied with the economy due to the high cost of living and a weak job market, with employers adding only 28,000 jobs a month since March. This discrepancy may reflect a "K-shaped economy," where wealthier Americans drive spending while lower-income households struggle. The unemployment rate remains low at 4.4%.

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consumer spending 90% us economy 80% gdp growth 70% economic growth 70% k-shaped economy 60% third quarter 60% job market 50% artificial intelligence 40% business investment 40%