The US economy performed slightly better than initially estimated in the third quarter, with stronger exports and a reduced drag on growth from inventories providing crucial support for economic expansion. According to data released on Thursday by the Bureau of Economic Analysis (BEA), inflation-adjusted gross domestic product grew at an annualized rate of 4.4%, surpassing the previously reported figure and marking the fastest pace in nearly two years. The report indicates the US economy achieved one of its strongest consecutive two-quarter growth periods since the post-COVID-19 recovery surge in 2021. The data also revealed that after former President Trump announced broad tariff policies, businesses front-loaded imports early in the year ahead of the tariffs taking effect, subsequently slowing their import pace. Despite fluctuating trade policies, consumer and business spending remained resilient, continuing to underpin the economy.

Against a backdrop of robust economic growth, a relatively stable job market, and inflation still above target, market participants widely anticipate that Federal Reserve officials will keep interest rates unchanged at next week's policy meeting. Simultaneously, another data set released on Thursday showed that US initial jobless claims remained at low levels, indicating continued strength in the labor market. The GDP report also noted that the Fed's preferred inflation gauge, the core Personal Consumption Expenditures (PCE) price index which excludes food and energy, rose at an annualized rate of 2.9% in the third quarter, consistent with the previously reported data.

Breaking down the components, consumer spending, the primary engine of US economic growth, increased by 3.5% in the third quarter. Within this, spending on services grew at its fastest pace in three years, while goods spending also accelerated compared to the previous quarter. Business investment grew by 3.2%, primarily driven by continued growth in spending on computer equipment; investment in data centers, which provide infrastructure for artificial intelligence, climbed to a record high. Given that trade and inventory fluctuations have caused some distortions to overall GDP over the past year, economists are paying closer attention to the "final sales to private domestic purchasers" indicator, which better reflects underlying demand. This measure grew by 2.9% in the third quarter, unchanged from the prior quarter, signaling that US domestic demand remains on a solid footing.