U.S. GDP Grows 4.4% in Q3, Exceeding Prior Estimate

The U.S. gross domestic product expanded at an annualized rate of 4.4% in the third quarter of 2025, according to the Bureau of Economic Analysis, slightly above the previously reported 4.3% estimate. The revised figure reflects stronger consumer spending and business investment, reinforcing expectations of resilient economic momentum ahead of the year-end. Consumption rose 4.1%, driven by durable goods and services, while nonresidential fixed investment increased 6.7%. Government spending contributed modestly, and exports edged up 0.8% as import growth slowed. The data, released on January 22, 2026, supports the Federal Reserve’s stance on maintaining current interest rates amid persistent inflation pressures. Markets reacted with muted volatility, with the S&P 500 gaining 0.3% in early trading. Analysts note that the strong GDP print may influence policy decisions in February, particularly if inflation data remains elevated.