An acceleration in consumer spending, up 3.5% from 2.5% in the second quarter, and exports, up 8.8% from -1.8% in the second quarter, were the main contributors to the third-quarter GDP reading. Federal spending also played a sizable role, a reflection of the large uptick in defense spending as well as buyouts for federal workers, part of efforts to ultimately lower government spending. The fourth-quarter GDP report set to be released next month, however, is expected to be negatively impacted by a drop in federal spending resulting from the 43-day government shutdown. A mixed economic pictureThe GDP report is akin to a bird’s-eye view of the economy. While wealthy Americans continue to drive much of the growth in consumer spending, lower- and middle-income consumers have been much more cautious.

Source: CNN December 23, 2025 15:06 UTC