Jacksonville, FL, January 23, 2026
The U.S. economy saw impressive growth in the third quarter, expanding at an annualized rate of 4.4%. This surge is primarily driven by robust consumer spending, which increased by 3.5%, and a significant rebound in exports. Jacksonville’s businesses are adapting and innovating to maintain this momentum. Despite challenges such as inflation and a stagnant job market, the overall outlook remains positive for local entrepreneurs and the economy as a whole.
U.S. Economy Surges: Key Insights from Q3 2025
Strong Consumer Spending Fuels Economic Growth
Jacksonville, FL—In the third quarter of 2025, the U.S. economy showcased impressive growth, expanding at an annualized rate of 4.4%, the fastest pace in two years. This remarkable uptick underscores the resilience and potential of American business, driven largely by robust consumer spending that contributes to 70% of the nation’s GDP. The latest data indicate that consumer spending rose by 3.5% during this period, showcasing a strong recovery in household expenditures and laying a solid foundation for further economic expansion.
In our current economic landscape, it is essential to recognize the entrepreneurial spirit thriving locally. Jacksonville’s businesses have exhibited adaptability and innovation, which are critical as we navigate these changing economic conditions. The expansion reflects a broader trend of increased investment, both domestically and globally, particularly in sectors such as artificial intelligence. By keeping regulatory barriers low, local entrepreneurs can take full advantage of such opportunities and propel the Duval County economy forward.
Key Economic Drivers
Consumer Spending
The significant increase of 3.5% in consumer spending in Q3 2025 marks the highest growth rate for the year, up from 2.5% in the previous quarter. This surge primarily results from heightened consumer spending on services, particularly healthcare, which has seen a remarkable increase of 3.6%. In contrast, spending on durable goods, such as vehicles, increased modestly by 1.6%, indicating shifting priorities in consumer behavior.
Exports and Imports
A notable rebound in the export sector contributed to the economic growth, with exports surging by 9.6% following a previous decline. Meanwhile, imports fell by 4.4%, extending previous reductions. This combination suggests a strengthened position for U.S. goods in the international market, positioning local businesses strategically to capture new opportunities for growth.
Business Investment
Business investment demonstrated healthy growth of 3.2%, fueled by a rising interest in artificial intelligence technologies. This investment is critical for fostering innovation among local startups and established firms alike, enabling them to harness new technologies and improve operational efficiencies, further contributing to economic resilience.
Inflation and Employment Trends
Inflation Rates
Inflation remains a pressing topic, with consumer prices rising by 2.8% in November compared to the previous year. This slight increase from 2.7% in October, alongside core inflation also rising by 2.8%, reflects ongoing price pressures. Despite these challenges, the underlying strength in consumer spending, which saw a 0.5% month-over-month increase, is a positive indicator of market confidence.
Employment Landscape
The labor market, however, displayed signs of stagnation, with only an average of 28,000 jobs added monthly since March, diverging from the robust hiring trends seen in the immediate post-pandemic phase. The unemployment rate remained stable at 4.4%, pointing toward limited flux in hiring and firing activities. Economists have raised concerns about a potential “jobless boom,” whereby significant economic growth does not translate into proportional benefits for the middle class.
Global Economic Outlook
On the international front, the International Monetary Fund (IMF) revised its global economic growth forecast for 2026 to 3.3%, up from an earlier projection of 3.1%. This adjustment reflects a broader resilience within the global economy, particularly supported by rising investments in artificial intelligence across North America and Asia. The U.S. economy is predicted to grow by 2.4%, strengthened by the most significant surge in tech investment since 2001, thus highlighting the important interplay between global trends and localized business success.
Conclusion
The strong performance of the U.S. economy in Q3 2025 showcases the roles of consumer spending and a rebound in export activities in fostering growth. While challenges such as inflation and an underwhelming job market persist, the positive momentum indicates a resilient economic landscape. As Jacksonville continues to embrace innovation and entrepreneurial spirit, residents are encouraged to support local businesses and engage with the economic opportunities that arise within our community, ultimately contributing to a vibrant future for Duval County’s economy.
Frequently Asked Questions (FAQ)
What was the U.S. GDP growth rate in the third quarter of 2025?
The U.S. economy expanded at an annualized rate of 4.4% in the third quarter of 2025, marking the fastest growth in two years.
What contributed to the economic growth in the third quarter of 2025?
The growth was primarily driven by robust consumer spending, which increased by 3.5%, and a surge in exports, which rose by 9.6%.
How did inflation behave in November 2025?
In November 2025, consumer prices rose by 2.8% from a year earlier, up from 2.7% in October. Core inflation, excluding food and energy, also increased by 2.8%. Despite these increases, consumer spending remained strong, with a 0.5% rise from the previous month.
What is the current unemployment rate in the U.S.?
The unemployment rate held steady at 4.4%, indicating limited hiring and firing activity. Economists have expressed concerns about a “jobless boom,” where economic growth does not translate into significant improvements for the middle class.
What is the global economic growth forecast for 2026?
The International Monetary Fund (IMF) has revised its global economic growth forecast for 2026 to 3.3%, up from the previously projected 3.1%. This adjustment reflects the resilience of the global economy, supported by rising investment in artificial intelligence across North America and Asia.
Key Features of the U.S. Economic Performance in Q3 2025
| Feature | Details |
|---|---|
| GDP Growth Rate | 4.4% annualized rate, the fastest in two years. |
| Consumer Spending | Increased by 3.5%, the highest this year. |
| Exports | Surged by 9.6%, rebounding from a 1.8% decline in the prior quarter. |
| Imports | Fell by 4.4%, extending the decline seen in the previous quarter. |
| Inflation | Consumer prices rose by 2.8% in November, up from 2.7% in October. |
| Unemployment Rate | Held steady at 4.4%, indicating limited hiring and firing activity. |
| Global Economic Outlook | IMF revised global growth forecast for 2026 to 3.3%, up from 3.1%. |
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Author: STAFF HERE JACKSONVILLE WRITER
The JACKSONVILLE STAFF WRITER represents the experienced team at HEREJacksonville.com, your go-to source for actionable local news and information in Jacksonville, Duval County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Jacksonville Jazz Festival, Riverside Arts Market, and World of Nations Celebration. Our coverage extends to key organizations like the Jacksonville Chamber of Commerce and JAXUSA Partnership, plus leading businesses in logistics, healthcare, and entertainment that power the local economy such as CSX Corporation, Baptist Health, and VyStar Credit Union. As part of the broader HERE network, including HEREOrlando.com, HEREStPetersburg.com, HERETallahassee.com, and HERETampa.com, we provide comprehensive, credible insights into Florida's dynamic landscape.
