The U.S. economy expanded at a 3.1 percent annual rate in the third quarter, according to the latest government data released on Thursday. This marked an acceleration from the 3 percent pace in the prior estimate and outpaced the second quarter's 1.5 percent growth.

Consumer spending, which drives about two-thirds of economic activity, rose at a 3.7 percent rate, the strongest since early 2023. Exports increased 9.6 percent, while federal government spending and investment jumped 8.9 percent, including a 13.9 percent surge in defense outlays.

Business investment grew modestly at 0.8 percent overall, though equipment spending advanced 10.8 percent. The figures underscore resilience in private demand despite elevated interest rates.

GDP growth has now exceeded 2 percent in eight of the last nine quarters. Economists noted that the upgrade from the initial estimate reflected stronger consumer outlays than previously reported.

The Commerce Department data comes as policymakers assess the balance between growth and persistent inflation pressures. Corporate profits also showed strength in recent quarters, supporting the expansion.

This performance highlights the underlying momentum in household and business activity heading into the final months of the year.