A feared recession didn’t materialize, but unemployment rose, wage growth slowed and affordability challenges are mounting.

The Bureau of Economic Analysis issued a delayed first estimate of gross domestic product for the third quarter, showing a surprisingly strong 4.3% pace of growth. That was led by increased consumer and government spending, as well as capital investment in artificial intelligence by business.

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.

As it stands, Trump’s pro-growth economic agenda hasn’t translated into higher payrolls or bigger pay raises. And that’s a sign that the U.S. could be experiencing what Mohamed El-Erian has described as an “ unsettling phenomenon ”: the decoupling of gross domestic product growth from employment.

The Conference Board’s reading for consumer confidence ticked lower in December to reach 89.1, while consumers’ take on current business and labor market conditions also dropped compared to November’s data.

The latest Emerson College poll asked respondents to grade Trump on his handling of immigration, the economy, affordability and health care.

The Trump administration is continuing to tout its economic agenda. But Trump faces an American public that feels largely negative on Trump's handling of the economy.

The kitchen sink was thrown at the economy in 2025 — punishing tariffs, higher inflation, rising unemployment — but the U.S. might still be growing at an above-average speed in a sign of surprising pluck.