# US growth beats forecasts as voters face midterm elections

- URL: https://talkfuse.com/story/us-economy-grows-faster-than-expected-in-report-out-just-ahead-of-elections/
- Published: 2026-10-29T13:09:00+00:00
- Updated: 2026-10-29T13:38:08+00:00
- Original publisher: The Guardian (publisher lean: Left)
- Original article: https://www.theguardian.com/business/2026/oct/29/economy-growth-third-quarter
- Topics: Americas, Art, Business, Culture, Economy, Elections, Middle East, Politics, World

## Key points

- US GDP grew at a 3.4% annualised rate in the third quarter.
- Consumer spending rose 3.8%, matching the previous quarter.
- AI investment boosted growth, but economists cautioned it may not reflect the wider economy.

## Summary

The US economy grew faster than expected in the third quarter, supported by steady household spending and investment linked to artificial intelligence. The figures contrast with falling consumer confidence and President Donald Trump’s low approval ratings, and arrive less than a week before midterm elections that will decide control of Congress.

GDP rose at a 3.4% annualised rate from July to September, above economists’ 3.2% forecast; consumer spending, which makes up more than two-thirds of the economy, grew 3.8%. Economists cautioned that AI spending may make growth look stronger than the broader economy, while higher petrol prices, subdued wage gains and households drawing on savings could weigh on spending. The Federal Reserve held its benchmark rate at 3.75% to 4% and said inflation remained elevated.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.