U.S. Q3 GDP growth revised upward, growth benefits unevenly distributed


NEW YORK, Jan. 22 (Xinhua) -- U.S. real GDP grew at an annualized rate of 4.4 percent in the third quarter of 2025, marking a slight upward revision from the previous estimate of 4.3 percent, according to a final reading released Thursday by the U.S. Bureau of Economic Analysis (BEA).

The growth in the third quarter of 2025, driven by strong investment and exports, represents an acceleration from the 3.8 percent growth in the second quarter of 2025, though experts warn that the benefits of this growth are unevenly distributed.

The BEA attributed the 0.1 percentage point revision primarily to stronger-than-expected exports and fixed investment, which offset a slight downward adjustment in consumer spending. Overall, the quarter's growth was fueled by increases in personal consumption, government spending and exports.

Inflation data remained stable in the final report. The personal consumption expenditures (PCE) price index rose 2.8 percent in the quarter, while the core PCE index, which excludes volatile food and energy prices, increased 2.9 percent. Both figures were unchanged from previous estimates.

Following the release of the data, major U.S. stocks opened higher, while gold prices retreated from session highs.

Moreover, the U.S. PCE price index posted year-on-year growth of 2.7 percent in October and 2.8 percent in November 2025, according to data issued by the BEA on Thursday. The core PCE index for October and November 2025 grew 2.7 percent and 2.8 percent year on year, respectively, which shows no easing of inflation pressures.

Despite the robust headline numbers, which mark a significant recovery from the economic contraction seen in early 2025, analysts point to a disconnect between GDP growth and the labor market.

Heather Long, chief economist at Navy Federal Credit Union, said that "the United States is experiencing a jobless boom where strong growth is powered by AI investments and consumption by wealthier families, but there is almost no hiring."

She noted that the situation remains "uneasy" for middle-class families who have yet to feel the economic uplift.

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