{"id":695013,"date":"2026-10-29T13:00:03","date_gmt":"2026-10-29T13:00:03","guid":{"rendered":"https:\/\/buglecall.org\/?p=695013"},"modified":"2026-10-29T13:00:03","modified_gmt":"2026-10-29T13:00:03","slug":"us-economy-grows-3-4-in-q3-fastest-pace-in-a-year-supercharged-by-massive-ai-capex-spending","status":"publish","type":"post","link":"https:\/\/buglecall.org\/?p=695013","title":{"rendered":"US Economy Grows 3.4% In Q3, Fastest Pace In A Year, Supercharged By Massive AI Capex Spending"},"content":{"rendered":"

US Economy Grows 3.4% In Q3, Fastest Pace In A Year, Supercharged By Massive AI Capex Spending<\/span><\/p>\n

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The US economy grew in the third quarter at the fastest pace in a year, supercharged by the debt-funded AI capex spending spree and a resilient American consumer.<\/p>\n

Real Gross domestic product\u00a0(adjusted for inflation) increased an annualized 3.4% in the three months through September after growing 2.2% in the second quarter, according to the initial estimate\u00a0by the Bureau of Economic Analysis. The rise in GDP beat the 3.2% median projection in a Bloomberg survey of economists.<\/p>\n

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Real final sales to private domestic purchasers – a closely watched metric that combines consumer spending and fixed private investment – rose 4.9% in the third quarter, up from 4.6%. Government spending also increased, largely reflecting oil sales from the Strategic Petroleum Reserve. Higher imports, which count as a negative in calculating GDP, offset some of the gains.<\/p>\n

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While personal spending came in stronger than expected, rising an annualized 3.8%, above estimates of a 3.4% print, the biggest driver behind the world\u2019s largest economy continued to be relentless business spending (which has resulted in a massive debt bubble to go along the AI stock bubble). Outlays for equipment\u00a0contributed\u00a0more to GDP in the third quarter than at any time since 2011 outside of the pandemic rebound.<\/p>\n

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Household\u00a0spending\u00a0was similarly robust, increasing an annualized 3.8% for a second straight quarter, even amid historically low consumer sentiment tied to cost-of-living concerns.\u00a0<\/p>\n

\u201cIt looks like a strong quarter driven by domestic demand activities and a drag from trade,\u201d said Eric Winograd, senior economist for fixed income at AllianceBernstein. \u201cWe talk about the boost to growth from AI, but a lot of that stuff is imported.\u201d<\/p>\n

Meanwhile, separate figures from the agency showed inflationary pressures mounted at the end of the quarter. The personal consumption expenditures\u00a0price index\u00a0– the Fed’s preferred measure – rose 0.5% in September, the most in six months. Excluding food and energy, the so-called\u00a0core gauge\u00a0advanced 0.3%; both were in line with estimates.\u00a0<\/p>\n

Federal Reserve chair Kevin Warsh said on Wednesday after the central bank held rates steady that \u201ceconomic growth has strengthened\u201d as he hailed \u201chealthy\u201d consumer spending and capital expenditures that he said were at a \u201chistorically high share of GDP\u201d.<\/p>\n

The GDP report is the last major reading on the health of the US economy before next week\u2019s midterm elections, whose results will determine who controls Congress for President Donald Trump\u2019s final two years in office, with many campaigns targeting concerns around\u00a0affordability and high prices.<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
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US Economy Grows 3.4% In Q3, Fastest Pace In A Year, Supercharged By Massive AI Capex Spending The US economy grew in the third quarter at the fastest pace in a year, supercharged by the debt-funded AI capex spending spree and a resilient American consumer. Real Gross domestic product\u00a0(adjusted for inflation) increased an annualized 3.4%… Continue reading US Economy Grows 3.4% In Q3, Fastest Pace In A Year, Supercharged By Massive AI Capex Spending<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":[],"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[17,22,13],"tags":[],"class_list":["post-695013","post","type-post","status-publish","format-standard","hentry","category-border-security","category-immigration","category-immigration-reform","entry"],"_links":{"self":[{"href":"https:\/\/buglecall.org\/index.php?rest_route=\/wp\/v2\/posts\/695013","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buglecall.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buglecall.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buglecall.org\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buglecall.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=695013"}],"version-history":[{"count":0,"href":"https:\/\/buglecall.org\/index.php?rest_route=\/wp\/v2\/posts\/695013\/revisions"}],"wp:attachment":[{"href":"https:\/\/buglecall.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=695013"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buglecall.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=695013"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buglecall.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=695013"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}