From the Thursday, October 29, 2026 edition · story 3
U.S. economy grew at a 3.4% annual rate in the third quarter as the Fed's preferred inflation measure rose to 3.6%
Who covered it
Out of the fifteen outlets on our panel. Sides come from AllSides and Ad Fontes Media ratings: how we rate outlets.
What happened
The U.S. economy grew at a 3.4 percent annual rate in the third quarter of 2026 (July through September), up from 2.2 percent in the second quarter, according to the first, or "advance," estimate released on Thursday, October 29, by the Bureau of Economic Analysis (BEA), a Commerce Department agency. The bureau said the growth came from increases in investment, consumer spending and government spending, partly offset by a drop in exports. An annual rate shows what a quarter's growth would add up to if it continued for a full year; for the quarter itself, the BEA puts the growth at 0.8 percent.
In a separate report the same morning, the BEA said the personal consumption expenditures (PCE) price index, the inflation measure the Federal Reserve uses for its 2 percent goal, was 3.6 percent higher in September than a year earlier, up from 3.4 percent in August. Prices rose 0.5 percent from August to September. Leaving out food and energy, prices were up 3.1 percent over the year. CNN and Fox Business reported that the inflation figures matched economists' forecasts and that growth beat them.
The reports came a day after the Fed left its benchmark interest rate unchanged, with two voting members preferring an increase, and five days before the November 3 midterm elections. The White House and Republicans in Congress pointed to the growth and to business investment as signs their policies are working, and one blamed past Democratic spending for high costs. Democrats in Congress pointed to the inflation figure and blamed President Trump's policies, including, one said, his tariffs and the war with Iran.
The headlines in the video
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Left · CNN
Last snapshot of the US economy before midterms shows stronger growth but higher inflation
October 29, 2026 · Read the original
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Center · Reuters
Robust consumer spending, AI-related investment power US economy in third quarter
October 29, 2026 · Read the original
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Right · Fox News
Fed's preferred inflation gauge rose in September as third-quarter GDP beats expectations
October 29, 2026 · Read the original
Every panel outlet
Each headline as the outlet published it, with a link to the original.
Left · 3 of 5
- CNN In the videoLast snapshot of the US economy before midterms shows stronger growth but higher inflationOct 29
- The New York TimesU.S. GDP Increased 3.4% in Third QuarterOct 29
- The Washington PostU.S. economy grew at a fast clip this summer, thanks to business, consumer spendingOct 29
- HuffPostNo story found by Oct 29.
- MS NOWNo story found by Oct 29.
Center · 4 of 5
- Reuters In the videoRobust consumer spending, AI-related investment power US economy in third quarterOct 29
- The HillUS GDP grew by 3.4 percent in third quarter amid AI investment boomOct 29
- BBC NewsUS economy grew faster than expected in third quarterOct 29
- NewsweekNo story found by Oct 29.
- BloombergUS Economy Grows a Faster-Than-Expected 3.4%, Most in a YearOct 29
Right · 5 of 5
- Fox News In the videoFed's preferred inflation gauge rose in September as third-quarter GDP beats expectationsOct 29
- New York PostUS economy grows at surprising 3.4% rate, powered by consumer spending, AI investmentOct 29
- Washington ExaminerEconomy expanded at 3.4% rate in third quarter in sign of underlying strengthOct 29
- The Washington TimesU.S. economy grew faster over the summer, as consumers keep spending despite high pricesOct 29
- BreitbartU.S GDP Growth Accelerated to 3.4% in Third QuarterOct 29
The full report
The background and timeline, what each side says in full, and what happens next.
- Summary
- What happened
- What "annual rate" means, and how the PCE index differs from the CPI
- How we got here
- What people involved say
- What happens next
- How it was covered
- Sources
- Corrections
Sources
- U.S. Bureau of Economic Analysis, GDP (Advance Estimate), 3rd Quarter 2026, October 29, 2026.
- U.S. Bureau of Economic Analysis, Personal Income and Outlays, September 2026, October 29, 2026.
- U.S. Bureau of Economic Analysis, Why does BEA publish percent changes in quarterly series at annual rates?.
- U.S. Bureau of Economic Analysis, What accounts for the differences in the PCE price index and the Consumer Price Index?.
- U.S. Bureau of Economic Analysis, GDP (Advance Estimate), 2nd Quarter 2026, July 30, 2026.
- Federal Reserve Board, Federal Reserve issues FOMC statement, October 28, 2026.
- Federal Reserve Board, Federal Reserve issues FOMC statement, September 16, 2026.
- Federal Reserve Board, Why does the Federal Reserve aim for inflation of 2 percent over the longer run?.
- Federal Reserve Board, Meeting calendars and information.
- CNN, Last snapshot of the US economy before midterms shows stronger growth but higher inflation, October 29, 2026.
- Fox Business, Fed's preferred inflation gauge rose in September as third-quarter GDP beats expectations, October 29, 2026.
- AFP, via This Is Beirut, U.S. Economy Posts Strong Growth, Inflation Stubbornly High in Challenge to Trump, October 29, 2026.
- Fox Business, Dems call Trump 'a total failure' over inflation as White House cites economic growth, October 14, 2026.
- The White House, President Trump Unleashes the American Economy: GDP Surges as Investment Hits Multi-Year High, October 29, 2026.
- House Ways and Means Committee, Chairman Smith on PCE, GDP Reports: Republicans Fight to Lower Prices, Deliver Bigger Paychecks, More Jobs, & Targeted Tax Relief, October 29, 2026.
- House Budget Committee Democrats, Boyle Statement on September 2026 PCE Inflation Data, October 29, 2026.
Corrections
None as of October 29, 2026.