US Q3 GDP Surges to 3.4% Annualized, AI Investment Fuels Growth

The U.S. economy expanded at a 3.4 percent annualized pace in the third quarter, up from 2.2 percent in the second quarter, according to the Commerce Department. Consumer spending rose 3.8 percent, while business investment surged 12.7 percent, driven largely by a 37.4 percent jump in information‑processing equipment, a 9.6 percent rise in software, and a 7.5 percent increase in research and development. Housing investment fell 3.3 percent, its sixth decline in seven quarters, as high mortgage rates weigh on construction. The growth came amid higher energy prices linked to the Iran conflict, yet the economy remained resilient. Economists had forecast 3 percent growth, and this is the first of three quarterly estimates.