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U.S. Economy Grew 4.3% in Q3, Lifted by Exports, Spending and AI Investment

Analysts say much of the gain reflects concentrated hyperscaler AI spending rather than broad-based investment.

Overview

  • The Bureau of Economic Analysis reported the 4.3% annualized Q3 gain after a 43‑day federal shutdown delayed publication.
  • Growth reflected solid household spending (+3.5%), export strength and higher public outlays, with falling imports providing a mechanical lift even as President Trump credited tariffs.
  • Bank of America estimates hyperscalers invested about $399 billion in AI infrastructure this year, with Goldman Sachs noting AI‑linked firms issued over $200 billion in net bonds, roughly 30% of new dollar credit.
  • Outside AI, private capital spending remains weak or slightly declining, with analysts saying non‑tech investment and traditional equipment outlays have stalled.
  • Consumer confidence dropped for a fifth straight month in December to 89.1, underscoring the divergence between headline growth and household sentiment.