The U. S. Economy: Strong Growth Amid Challenges

The U. S. economy demonstrated remarkable growth in the third quarter of 2025, expanding at a 4.3% annual rate. This growth was primarily driven by military spending and a significant increase in corporate profits.

Concerns About Economic Health

Despite the robust growth, there are concerns about the economy's overall health:

• Consumer sentiment remains low
• Job market showing signs of weakness

These factors could impact future growth.

Disposable Personal Income

Disposable personal income, after taxes and adjusted for inflation, remained flat. This suggests that price increases are still affecting people's purchasing power.

Underlying Growth Measures

However, a key measure of underlying growth, which includes private investment and household consumption, remained strong.

Business Investment

Business investment, particularly in AI systems, cooled down. This could be a sign of uncertainty in the business sector.

Overall Performance

Overall, the economy is performing well, but there are challenges ahead.