WASHINGTON (AP) \u2014 Powered by strong consumer spending, the U.S. economy grew at the fastest pace in two years from July through September, the government said Thursday in a slight upgrade of its first estimate.<\/p>\n
America’s gross domestic product \u2014 the nation’s output of goods and services \u2014 rose at a 4.4% annual pace in the third quarter, the Commerce Department reported Thursday, up from 3.8% in the April-June quarter and from the 4.3% growth the department initially estimated. The economy hasn’t grown faster since third-quarter 2023.<\/p>\n
WATCH: How the affordability crisis has evolved since Trump’s return<\/a><\/p>\n Consumer spending, which accounts for 70% of U.S. GDP, grew at a healthy 3.5% pace. Spending on services such as healthcare rose 3.6% versus a 3% uptick on goods spending, including an increase of just 1.6% on so-called durable goods such as cars that are meant to last at least three years. A surge in exports and a drop in imports also contributed to robust third-quarter growth.<\/p>\n Business investment (excluding homebuilding) rose at a 3.2% clip, partly reflecting bets on artificial intelligence.<\/p>\n The economy has remained resilient despite uncertainty caused by President Donald Trump’s economic policies, particularly his double-digit taxes on imports from almost every country on Earth.<\/p>\n