US Economy Grows 3.4% in Third Quarter, Beating Forecasts, Days Before Midterm Elections

The US economy grew at a 3.4% annualized rate in the third quarter, faster than expected, the Commerce Department's Bureau of Economic Analysis said Thursday in its advance estimate of third-quarter gross domestic product. Economists polled by Reuters had forecast 3.2%, with individual estimates ranging from 1% to 4.2%. Resilient consumer spending and business investment driven by artificial intelligence more than offset the effect of higher oil prices stemming from the conflict in the Middle East. The report came less than a week before Tuesday's midterm elections, which will decide control of Congress. The pace is well above the roughly 2% rate some Federal Reserve officials regard as non-inflationary. On Wednesday the Fed left its benchmark rate in a 3.75%-4% range and said inflation remains elevated; economists expect a rate increase in December. Fed Chairman Kevin Warsh said economic activity is expanding at a strong pace and that domestic spending has been resilient despite uncertainty tied partly to geopolitical developments.

The left-leaning Guardian US leads with the growth figure but frames it against Americans' gloomy view of the economy, pointing to President Donald Trump's record-low approval ratings and a sharp drop in consumer sentiment. It also gives the most detail on the Federal Reserve, including the rate decision, the expected December increase and Warsh's remarks. The right-leaning Washington Times, in the excerpt available, also leads with accelerating summer growth and strong consumer spending, but ties it to inflation grumbling that challenges Trump and the Republican Party before the midterms, and it mentions high prices rather than approval ratings, the Fed or AI investment. Both sides tie the data to the election and to consumer resilience. They differ in emphasis: the Guardian stresses the gap between data and public mood, while the Washington Times stresses spending despite price complaints. The South China Morning Post largely mirrors the Guardian's opening and adds the forecast range.