The US economy accelerated over the three months to September, driven by higher consumer spending and a rebound in exports.

According to the latest report, the economy expanded at an annual rate of 4.3%, up from 3.8% in the previous quarter. This marks the fastest growth in two years and exceeded most analysts’ expectations of 3.2%.

The report had been delayed due to the recent US government shutdown. It shows that, despite trade and immigration policy shifts, inflation, and government spending cuts, the economy has maintained solid momentum.

Consumer spending rose at an annual rate of 3.5%, up from 2.5% in the previous quarter. Households spent more on health care services, even as the job market showed signs of slowing.

Meanwhile, imports declined, reflecting the tariffs imposed on foreign goods earlier this year. At the same time, exports surged 7.4%, helping offset the slowdown in business investment and housing. Government spending also increased, largely due to higher defense outlays.

Economists describe the economy as resilient. Aditya Bhave, senior economist at Bank of America, told the BBC that the US has “defied doom and gloom expectations” since 2022. He added that growth is likely to continue.

Michael Pearce, chief US economist at Oxford Economics, said the economy is well-positioned heading into 2026. He highlighted potential boosts from tax cuts and recent interest rate cuts by the Federal Reserve.

However, some analysts cautioned that rising prices could make it harder for lower and middle-income households to sustain spending. The personal consumption expenditures price index, the Fed’s preferred inflation measure, rose to 2.8% from 2.1% in the previous quarter.

Oliver Allen, senior US economist at Pantheon Macroeconomics, noted that weak labor markets, stagnant real incomes, and reduced savings are slowing household spending.

Despite challenges, the overall message is positive. The US economy shows strong growth and resilience, driven by consumption, exports, and strategic fiscal measures. Analysts will watch upcoming quarters closely to see if momentum continues.

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