Real gross domestic product (GDP) increased at an annual rate of 3.4 percent in the third quarter of 2026, according to an advance estimate from the U.S. Bureau of Economic Analysis (BEA). The third quarter, comprising July, August, and September, saw an acceleration in growth compared to the 2.2 percent increase recorded in the second quarter.
The increase in real GDP was driven by rises in investment, consumer spending, and government spending. These gains were partially offset by a decrease in exports. While imports increased, they act as a subtraction in the calculation of GDP. The acceleration in growth primarily reflected an upturn in government spending and an acceleration in investment.
Investment increases were driven by private inventory investment and equipment. Private inventory investment was led by the manufacturing and wholesale trade sectors, specifically in nondurable goods industries. Equipment increases were led by information processing equipment, such as computers and peripheral equipment. Consumer spending rose in both services and goods, with service increases led by health care and food services and accommodations, while goods increases were led by other nondurable goods like prescription drugs.
Government spending increases were largely accounted for by federal government spending, specifically nondefense consumption expenditures. This pattern reflected sales of crude oil from the Strategic Petroleum Reserve. Within the National Economic Accounts, these sales are deducted from government consumption expenditures. In the third quarter, sales from the Strategic Petroleum Reserve were less than sales in the second quarter, resulting in an increase in consumption expenditures.
The price index for gross domestic purchases increased 3.0 percent in the third quarter, down from a 5.6 percent increase in the second quarter. The personal consumption expenditures (PCE) price index increased 2.1 percent, compared to a 5.0 percent increase in the second quarter. The PCE price index, excluding food and energy, rose 2.5 percent, down from a 3.3 percent increase in the previous quarter. Real final sales to private domestic purchasers increased 4.9 percent in the third quarter, compared with a 4.6 percent increase in the second quarter.
The BEA is scheduled to release the GDP (Second Estimate) and Corporate Profits for the third quarter of 2026 on November 25, 2026, at 8:30 a.m. EST.
