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The U.S. economy grew at a surprisingly strong 4.3% annual rate in the third quarter, the most rapid expansion in two years, as government and consumer spending, as well as exports, all increased.U.S. gross domestic product from July through September the economy’s total output of goods and services rose from its 3.8% growth rate in the April-June quarter, the Commerce Department said Tuesday in a report delayed by the government shutdown. Analysts surveyed by the data firm FactSet forecast growth of 3% in the period.However, inflation remains higher than the Federal Reserve would like. The Fed’s favored inflation gauge called the personal consumption expenditures index, or PCE climbed to a 2.8% annual pace last quarter, up from 2.1% in the second quarter.Excluding volatile food and energy prices, so-called core PCE inflation was 2.9%, up from 2.6% in the April-June quarter.Economists say that persistent and potentially worsening inflation could make a January interest rate cut from the Fed less likely, even as central bank official remain concerned about a slowing labor market.“If the economy keeps producing at this level, then there isn’t as much need to worry about a slowing economy,” said Chris Zaccarelli, chief investment officer for Northlight Asset Management, adding that inflation could return as the greatest concern about the economy.In a slow holiday trading week, U.S. markets on Wall Street turned lower following the GDP report, likely due to growing doubts that another Fed rate cut is coming next month.Consumer spending, which accounts for about 70% of U.S. economic activity, rose to a 3.5% annual pace last quarter, up from 2.5% in the April-June period.Consumption and investment by the government grew by 2.2% in the quarter after contracting 0.1% in the second quarter. The third quarter figure was boosted by increased expenditures at the state and local levels and federal government defense spending.Private business investment fell 0.3%, led by declines in investment in housing and in nonresidential buildings such as offices and warehouses. However, that decline was much less than the 13.8% slide in the second quarter.Within the GDP data, a category that measures the economy’s underlying strength grew at a 3% annual rate from July through September, up slightly from 2.9% in the second quarter. This category includes consumer spending and private investment, but excludes volatile items like exports, inventories and government spending.Exports grew at an 8.8% rate, while imports, which subtract from GDP, fell another 4.7%.Tuesday’s report is the first of three estimates the government will make of GDP growth for the third quarter of the year.Outside of the first quarter, when the economy shrank for the first time in three years as companies rushed to import goods ahead of President Donald Trump’s tariff rollout, the U.S. economy has continued to expand at a healthy rate. That’s despite much higher borrowing rates the Fed imposed in 2022 and 2023 in its drive to curb the inflation that surged as the United States bounced back with unexpected strength from the brief but devastating COVID-19 recession of 2020.Though inflation remains above the Fed’s 2% target, the central bank cut its benchmark lending rate three times in a row to close out 2025, mostly out of concern for a job market that has steadily lost momentum since spring.Last week, the government reported that the U.S. economy gained a healthy 64,000 jobs in November but lost 105,000 in October. Notably, the unemployment rate rose to 4.6% last month, the highest since 2021.The country’s labor market has been stuck in a “low hire, low fire” state, economists say, as businesses stand pat due to uncertainty over Trump’s tariffs and the lingering effects of elevated interest rates. Since March, job creation has fallen to an average 35,000 a month, compared to 71,000 in the year ended in March. Fed Chair Jerome Powell has said that he suspects those numbers will be revised even lower. Matt Ott, AP Business Writer
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E-Commerce
Santa keeps delivering for quantum computing investors this year. On Monday, shares of well-known quantum computing firms shot up by double digits, with D-Wave Quantum stock up almost 15% and Quantum Computing Inc. up 11%. Shares of IonQ Inc. and Rigetti Computing were likewise up roughly 10%. The exact catalyst spurring those increases is unclear. It may have initially been sparked in part by D-Waves Monday announcement that it would be attending the CES 2026 trade show next month. The Palo Alto-based company plans to showcase its award-winning annealing quantum computing technology, hybrid quantum-classical solvers, and real-world customer use cases that are demonstrating measurable performance benefits, often beyond classical computing alone. Quantum computing stocks have seen strong growth in 2025 Aside from that announcement, there may simply be ongoing excitement about the quantum space in general. Publicly traded quantum computing firms have captivated investors over the past year or more, despite the speculative nature of the underlying technology that some say will transform the computer industry. A June report published by McKinsey & Company dug into the appeal, saying that surging investment and faster-than-expected innovation could propel the quantum market to $100 billion in a decade. It added that as quantum computing startups have received more funding from both public and private sources, the technology itself has started seeing more commercial deployment, and companies are also making progress in patenting the technology theyre developing. Year-to-date growth for these stocks has been mostly impressive and in some cases eye-popping. As of Tuesday morning, D-Wave shares are up 235% since January 1. IonQ shares are up 25%, and Rigetti shares are up 34%. The outlier is Quantum Computing Inc., which has seen its stock price fall 35% year-to-date. Will the end-of-year quantum rally last? It’s unclear how long the holiday rally is going to last, but some profit-taking already seems to be underway. As of early trading on Tuesday morning, D-Wave shares had fallen roughly 3%, while Rigetti was down around 1.58%. Shares in Quantum Computing Inc. IonQ were roughly flat.
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E-Commerce
We used to argue whether design was about aesthetics or about functionality. But in 2025, those conversations seemed downright quaint. Simpler debates for a simpler time. Now were wondering if craft can survive the age of AI, and if well ever escape the politicization of every brand and object again. For the December episode of our podcast By Design, I discussed these trends and more with Fast Company senior editor Liz Stinson. We were joined by some of our brightest friends in the industry who shared their biggest own moments in design for the year, including Paola Antonelli (senior curator at MoMA), Cliff Kuang (FC Designs first editor and senior staff designer at Google), Forest Young (Global Design & AI Resident at Wolff Olins), and Elizabeth Goodspeed (editor-at-large at Its Nice That). Just try to guess who called out vibe coding, and who highlighted Sabrina Carpenters latest tour. Tune in through Apple or Spotify, and please give us a few stars if you like it. See you in 2026!
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E-Commerce
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