GDP Soars at 4.3% Even as Economic Optimism Takes a Nosedive

America’s economic engine is roaring, but consumer confidence is heading the other way. The US economy grew at a 4.3% annualized pace in Q3, marking its strongest expansion since late 2023, fueled by healthcare spending, strong consumer electronics purchases, and higher federal defense outlays. Yet beneath that strength, sentiment is cracking.

• Net trade added 1.6 percentage points to growth as imports fell and exports held up, though analysts warn the boost may fade as tariff retaliation builds.
• Inflation fatigue is weighing on sentiment, with 78% of pessimistic consumers citing persistent price pressures as their top concern heading into the new year.

The way forward: For 2026, 33% of Americans expect their finances to worsen in 2026, the most pessimistic reading since tracking began in 2018. Bankrate’s Mark Hamrick warned that “inflation fatigue is real, as Americans prepare to flip the calendar but cannot turn the page.” Still, with health insurance premiums poised to spike and the job market cooling, Jefferies’ Thomas Simons noted that “the bar has been set extremely high for continued growth in Q4.”