Reviewed by Gotrade Internal Analyst
Jakarta, Gotrade News - The US economy just posted a surprise 4.3 percent growth in the third quarter of 2025. This figure crushed market expectations and serves as a crucial indicator amidst global slowdown fears.
Key Takeaways
- US GDP grew 4.3 percent annually, beating analyst forecasts of 3.2 percent.
- Growth was fueled by consumer spending and a drop in imports due to tariffs.
- The job market is actually cooling, with unemployment hitting its highest level since 2021.
Delayed by the government shutdown, this report shows the fastest expansion rate in two years. This momentum effectively shuts down the narrative that the US economy is heading for stagnation anytime soon.
The US Bureau of Economic Analysis (BEA) dropped this initial estimate on Tuesday (Dec 23, 2025).
This significant jump was mainly driven by solid consumer spending and a drop in foreign imports. The dip in imports was likely triggered by tariff policies implemented earlier this year.
The US Commerce Department noted that consumer spending accounts for about two-thirds of total economic activity.
However, this shiny growth number is overshadowed by real weakness in the labor market. Unemployment ticked up to 4.6 percent in November, the highest level we've seen since 2021.
On the flip side, business investment in non-residential structures actually contracted sharply by 6.3 percent. This data suggests a shift in corporate capital expenditure focus.
Economists at Capital Economics noted this decline could be a sign that the AI infrastructure investment boom is starting to cool off.
Despite these mixed signals from macro data, the stock market reacted with optimism. Major indices managed to touch new all-time highs at Tuesday's close.
This was reflected in the movement of the SPDR S&P 500 ETF Trust, which posted moderate gains amidst holiday trading volume.
This puts the Fed in a tight spot to balance its inflation target with the mandate to keep employment stable. Investors need to watch closely if this consumer spending trend can hold up while public sentiment takes a hit.
Reference:
- ABC News, US economy grew more than expected in 3rd quarter. Accessed on December 24, 2025
- NBC News, Spending helped drive 4.3% economic growth from July to September, delayed GDP report shows. Accessed on December 24, 2025
- Featured Image: Shutterstock
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