President Trump and the Republican‑led Congress got a boost Tuesday from three straight months of solid economic growth, handing them a timely talking point as they head into a midterm election cycle where the economy is shaping up as voters’ top concern.
The U.S. economy grew at a 4.3% annual rate in the third quarter, according to an initial estimate from the Bureau of Economic Analysis. That was the fastest pace in two years and an uptick from the 3.8% growth posted in the second quarter.
The report on gross domestic product, which represents the value of all goods and services across the economy, covers July, August and September. The government shutdown delayed the release of the data.
Mr. Trump quickly claimed credit, saying the numbers vindicate his administration’s tariffs on imports. The levies have pushed prices higher, but they haven’t produced the inflation surge many economists anticipated.
“The tariffs are responsible for the great USA economic numbers just announced,” Mr. Trump said on social media. “And they will only get better!”
Stocks rose on the report. The S&P 500 closed at a record high, gaining 31 points, or 0.4%, to finish at 6,909 points. The Nasdaq rose 0.5%, and the Dow Jones Industrial Average gained 0.1%.
White House press secretary Karoline Leavitt also cheered the news, saying “the doubters, naysayers, panicers, and liberal media have been proven wrong — again.”
“Trust in Trump,” she said.
Officials attributed the GDP jump to stronger consumer spending, rising exports and increased government outlays. Total corporate profits increased by $166 billion.
Inflation remains higher than the Federal Reserve would like. The Fed’s favored inflation gauge — the personal consumption expenditures index, or PCE — climbed to a 2.8% annual pace last quarter, up from 2.1% in the second quarter.
Excluding volatile food and energy prices, core PCE inflation was 2.9%, up from 2.6% in the April-to-June quarter.
Consumer spending, which accounts for about 70% of U.S. economic activity, rose to a 3.5% annual pace last quarter, up from 2.5% in the April-to-June period.
Consumption and investment by the government grew by 2.2% in the quarter after contracting 0.1% in the second quarter. The third-quarter figure was boosted by increased expenditures at the state and local levels and federal government defense spending.
Joel Griffith, a senior fellow at Advancing American Freedom, warned that the top‑line numbers may be overly optimistic. He noted that private investment declined and that healthcare spending accounted for a significant share of the growth.
He said the rise in consumer spending coincided with a limited increase in real wages, which amounts to “families going further into debt to finance purchases.”
Mr. Trump and fellow Republicans argue that the latest data shows they are cleaning up what they describe as an economic mess inherited from President Biden and congressional Democrats.
The White House points to core inflation’s decline to a five‑year low. Republicans highlight cheaper gas and egg prices as further signs of progress.
That message didn’t resonate with voters in the off‑year elections in November.
Democrats scored high‑profile wins across the country. They said the results show that voters have buyer’s remorse and doubt Mr. Trump’s ability to tackle the rising costs of housing, energy, groceries and other essentials.
Polls show some ominous signs for Republicans.
Mr. Trump’s approval rating hit a second-term low last month, with polls showing he also lost ground on the economy. His approval rating has since ticked up.
The new GDP number is also giving Republicans fresh optimism.
House Budget Committee Chairman Jodey Arrington, Texas Republican, said the pre-Christmas report “is unbiased proof that the pro-growth policies” that Mr. Trump and congressional Republicans have ushered in through the One Big Beautiful Bill Act, deregulations and revised trade deals “are laying the foundation for an economic renaissance.”
Mr. Arrington added in his statement, “With inflation and interest rates coming down and economic growth and wages going up, Americans are putting more money in their pockets, families are getting much-needed relief, and our nation is moving on from the Democrats’ era of un-affordability.”
A spokesperson for the National Republican Senatorial Committee, the Senate Republicans’ campaign arm, said the “robust economic growth shows America is finally getting back on the right track.”
• This article is based in part on wire service reports.
• Seth McLaughlin can be reached at smclaughlin@washingtontimes.com.
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