UPDATE - US economy expands by 4.3% in Q3, exceeding forecasts

UPDATES WITH MORE DETAILS, COMMENTS FROM PRESIDENT TRUMP

By Mucahithan Avcioglu

ISTANBUL (AA) - The US economy expanded by 4.3% on a quarterly basis in the third quarter of the year, beating market expectations of 3.3%.

It marked the strongest growth in two years, following a 3.8% growth in the second quarter, preliminary data from the Bureau of Economic Analysis showed Tuesday.

The rise in real gross domestic product (GDP) in the third quarter primarily reflected a smaller decrease in investment, an acceleration in consumer spending, and upturn in exports and government spending, a bureau statement said.

"Imports, which are a subtraction in the calculation of GDP, decreased," it said.

Real final sales to private domestic purchasers, the sum of consumer spending and gross private fixed investment, rose 3% in the third quarter, compared with an increase of 2.9% in the second quarter, the statement said.

It also said that the price index for gross domestic purchases climbed 3.4% in the third quarter, compared to an increase of 2% in the second quarter.

Commenting on the data, US President Donald Trump emphasized that the broad tariff policy which his administration announced in April was responsible for the stronger-than-expected GDP growth.

"The TARIFFS are responsible for the GREAT USA Economic Numbers JUST ANNOUNCED…AND THEY WILL ONLY GET BETTER!" Trump wrote on his Truth Social platform.

"Also, NO INFLATION & GREAT NATIONAL SECURITY. Pray for the U.S. Supreme Court!!!" he added.

After a lower court ruled on May 28 that the reciprocal tariffs exceeded presidential authority under the International Emergency Economic Powers Act (IEEPA), the Supreme Court heard arguments on Nov. 5 on whether Trump’s tariff actions exceeded those emergency powers.

The top court has not yet issued a ruling regarding the legality of the tariffs, and the timing of the ruling is still not certain.