WASHINGTON, D.C. — The U.S. economy expanded at a 3.4% annualized rate in the third quarter of 2026, its fastest pace in a year, as stronger business investment and consumer spending supported growth that exceeded economists’ forecasts, according to figures cited by the White House.
The Trump administration pointed to accelerating capital expenditures as evidence that its economic policies are encouraging companies to expand domestic production. Private investment in plants and equipment increased at a 9.4% annualized rate during the quarter, building on gains recorded earlier in the year.
A broader measure of business investment grew at nearly 13%, its strongest quarterly performance in almost 15 years, according to the administration.
The figures indicate that corporate capital spending was an important contributor to economic activity during the quarter, alongside continued household consumption.
Consumer spending increased at a 3.8% annualized rate, reflecting sustained demand despite uncertainty surrounding the broader economic outlook.
Growth also exceeded several forecasts. The White House reported that the economy expanded at a 2.7% annualized rate over the past three quarters, compared with a 2.4% Blue Chip consensus forecast and a 2.2% projection from the Congressional Budget Office.
The administration also cited a Bloomberg survey in which 72% of participating economists underestimated the third-quarter growth figure.
Investment trends have strengthened relative to previous years, according to the White House. The administration reported that private investment growth so far in 2026 was more than twice the pace recorded in 2025 and three times the 2.3% rate recorded in 2024.
Changes in the composition of U.S. imports provided another indication of capital spending activity. Equipment and machinery used in production accounted for a record share of imports, while consumer goods represented 17% of goods imports, matching the lowest share on record, according to the administration.
The increased share of capital goods suggests businesses are purchasing more equipment relative to consumer merchandise, although the import figures alone do not establish how much additional manufacturing capacity will ultimately be developed domestically.
President Donald Trump’s administration attributed the expansion to its tax, regulatory, energy and trade policies, arguing that those measures have encouraged businesses to invest in U.S. operations.
The growth and investment figures document stronger economic activity during the quarter, but do not independently establish how much of that improvement resulted from specific administration policies.
The third-quarter expansion places the U.S. economy above the growth rates cited in major forecasts, with business investment and household spending providing the principal evidence of continued economic momentum.
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