US Economy Expands 3.4% in Q3, Driven by Business Investment and AI

The Bureau of Economic Analysis reported that the US economy expanded in the third quarter at the fastest pace in a year, with inflation-adjusted gross domestic product increasing an annualized 3.4%. This growth was fueled by robust business investment and resilient consumer spending. Andrew Husby, a senior US economist at BNP Paribas, noted that the economy is performing well, supported by the AI buildout.

The strong performance indicates that the world’s largest economy remains energized by vibrant business spending, much of which is tied to investment in artificial intelligence. Household spending also remained robust, increasing an annualized 3.8% for the second consecutive quarter. These figures provide a major reading on the health of the US economy.