Macro Anton
Resilient Consumer Drives Growth
The U.S. economy grew at an annualized rate of 4.3% in the third quarter of 2025, shattering economists' expectations of 2.5% and marking the strongest performance in two years. The surge was primarily driven by resilient consumer spending, which increased by 3.8% despite elevated interest rates and inflationary pressures. This data suggests that the Federal Reserve's 'soft landing' scenario is not only achievable but may be transitioning into a period of robust expansion.
Business investment also saw a significant uptick, particularly in the technology and renewable energy sectors, fueled by government incentives and the ongoing AI revolution. Exports rose by 5.1%, narrowing the trade deficit. However, some analysts caution that this pace of growth may prompt the Fed to keep rates higher for longer to prevent inflation from reigniting.
