The U.S. economy grew at its fastest pace in two years from July through September, capping six months of robust growth that economists caution is unlikely to continue.

New data from the Commerce Department on Tuesday — delayed by two months because of the government shutdown — showed that gross domestic product grew at an annualized rate of 4.3 percent during the third quarter, driven mainly by consumer spending and a rise in net exports, as U.S. companies sold more industrial supplies, pharmaceuticals, and gold abroad.

“This was the strongest six months of growth since late in 2023, but it certainly didn’t feel that way for most people,” said Diane Swonk, chief economist at accounting firm KPMG. “Consumers are still spending, and there’s been extraordinary investment in data centers, but we’re in a very odd situation where the economy is growing without generating jobs.”

Despite the hefty growth, many economists are forecasting tepid, if any, growth in the current fourth quarter, largely because of the spending and investment hit from the 43-day government shutdown that began Oct. 1.

GDP, the sum of all goods and services produced in the country, is the broadest measure of the economy. Brisk consumer spending, led by health care, recreational goods, and cars, made up more than half of the latest quarter’s growth. A pickup in U.S. exports and government spending also contributed, while a pullback in business investment subtracted from overall growth.

President Donald Trump was quick to cheer the strong reading as proof that his trade policies were juicing the economy.

“The SUCCESS is due to Good Government, and TARIFFS,” he posted on the social media platform Truth Social. “Consumer spending is STRONG, Net Exports are WAY UP, Imports and Trade Deficits are WAY DOWN, and there is NO INFLATION! ... The Trump Economic Golden Age is FULL steam ahead.”

Economists, though, point out that many Americans, especially lower- and middle-income ones, aren’t feeling the benefits of a fast-growing economy.

“The composition of growth during the quarter, which was almost certainly driven by upper-end households' spending and technology investment that will result in little job creation, speaks volumes about the public souring on the economy heading into the holiday season,” Joe Brusuelas, chief economist at RSM US, wrote in an email to clients.

AI-related spending contributed to about 14 percent of the quarter’s growth, he said. Businesses' spending on equipment and intellectual property continued to grow, albeit at a slower pace than they did earlier in the year.

Tariff-related swings in purchasing habits and trade have weighed heavily on this year’s data, leading to a negative reading in the first three months of the year, followed by an unusually high growth rate the next quarter. In the third quarter, growth was boosted by a flurry of car purchases, as Americans bought ahead to avoid the Trump administration’s promised tariffs, but economists say that bump has already passed.

“This was a quarter when consumers returned to being the key driver of the U.S. economy,” Heather Long, chief economist at Navy Federal Credit Union, wrote in an email. “If the economy can avoid widespread layoffs, most American consumers can keep spending.”

Economists generally expect GDP growth for the full year will come in around 2 percent, which is considered solid but not strong.

The mismatch of recent data — showing sturdy overall growth but a weakening job market — is making it tougher for the Federal Reserve to chart its course on interest rates. Stocks dipped following the GDP report, as investors worried that the stronger-than-expected reading would lead the Fed to put off additional interest rate cuts in the coming months.

For businesses nationwide, 2025 has so far been marked by deep uncertainty. Many have held off on large purchases and hiring as they wait to see how tariffs, immigration rules, and other Trump administration polices play out.

At Pretzel Pete, which makes salty snacks in smoky Gouda and margarita varieties, owner Karl Brown is dealing with higher costs but says business is up about 20 percent this year. The Pennsylvania-based manufacturer sells about half of its goods abroad, in Germany, Canada, and Britain.

Although Brown is paying more for the ingredients he imports — such as cassava flour from India, which has been hit by a 25 percent tariff — he says export demand has increased as a weaker dollar makes American-made goods more attractive abroad.

“I was concerned about our exports this year, but they have not been affected,” he said. “Our business has grown a lot this year. Would it have increased more if the U.S. economy weren’t as uncertain? Probably. But so far things are fine.”

Still, Brown is closely watching for signs of an impending slowdown. Usually by this time of year, he’d have received at least 15 gift baskets from vendors and suppliers. This year, he’s gotten just one.

“That tells you everything you need to know about how businesses are feeling,” he said.

The average worker would need to save for 52 years to claw their way out of the middle class and be classified as wealthy, new research reveals

Research from the Resolution Foundation and Investopedia has painted a stark picture of the modern "wealth ladder." In both the UK and the US, the traditional path of working hard and saving is no longer a reliable ticket to the top. Instead, a combination of stagnant wages, soaring asset prices, and "passive gains" has created a gap that would take decades—or even a century—to bridge.

The UK: A 52-Year Climb

In Britain, the divide between the middle class and the wealthiest 10% has become an "absolute wealth gap" that labor alone cannot close.

The Cost of Entry: To move from the median wealth bracket to the top 10%, a worker needs to amass £1.3 million ($1.7 million).
The Timeline: Even if the average worker saved 100% of their earnings (living on nothing), it would take 52 years to reach that goal.
The Culprit: Since 2010, the majority of wealth growth (53%) has come from passive gains—rising house prices and pension valuations—rather than active saving.
The Mobility Trap: 76% of people from lower-income families remain stuck within one decile of their starting position over four years, suggesting that wealth is increasingly inherited rather than earned.

The US: The $4.4 Million "American Dream."

The situation in the U.S. is even more mathematically daunting, as the price of a "standard" middle-class life has outpaced lifetime earnings.

Milestone	Estimated Cost (Lifetime)
Retirement (20 years)	$1.6 million
Raising 2 Kids + College	$832,000
Home Ownership	$930,000
Car Ownership (New)	$811,000
Total "Dream" Cost	$4.4 million

The Savings Gap: The median weekly earnings for a full-time U.S. worker are currently $1,214 (approx. $63,128/year). At this rate, it would take 70 years of saving every penny to afford the $4.4 million "Dream."
Lifetime Earnings Shortfall: Most Americans will earn roughly $1 million less in their entire career than the $4.4 million required for these milestones.
Feeling vs. Being Rich: While workers say they need $2.3 million to feel wealthy, that amount is still $2.1 million short of actually affording the suburban house, two kids, and annual vacations associated with the American Dream.

The New Reality: "Money Makes Money"

The common thread in both nations is the shift from an income-based economy to an asset-based economy.

Passive vs. Active: Wealthy individuals stay wealthy because their existing assets (property, stocks) grow automatically. Workers struggle because their primary asset—time/labor—does not scale at the same rate as inflation or the housing market.
Structural Squeeze: With AI potentially disrupting job stability and the cost-of-living "vise" tightening, the "middle class" is increasingly a place where people work to survive rather than save to escape.