The American Financial Services Association (AFSA) has announced that new federal data indicates the U.S. economy experienced solid growth in the third quarter of 2025. This growth was primarily driven by consumer spending and supported by trade, with near-term indicators suggesting continued momentum.
According to the Bureau of Economic Analysis (BEA), the initial estimate shows that the real U.S. gross domestic product (GDP) grew at a 4.3% seasonally adjusted annual rate in the third quarter of 2025, an increase from 3.8% in the previous quarter. On a year-over-year basis, real GDP rose by 2.3%. The BEA reported that stronger consumer spending was the primary driver of this growth, with net exports also contributing positively, despite a slight decline in private investment. This estimate was released on December 23, 2025, following a delay caused by a government shutdown.
Consumer spending emerged as the largest contributor to economic growth during this period, according to BEA data. Personal consumption expenditures added 2.39 percentage points to the overall 4.3% increase in real GDP. Consumer spending grew at a 3.5% annual rate during the quarter, up from 2.5% in the second quarter, with gains noted across both services and goods sectors. The BEA identified health care, other services, and information-processing equipment as key contributors.
Trade also played a significant role in boosting third-quarter growth, with net exports adding 1.59 percentage points to real GDP due to stronger exports and reduced drag from imports. In contrast, gross private domestic investment remained flat, subtracting 0.02 percentage points from GDP growth, while a decline in private inventories reduced growth by another 0.22 points. Government spending contributed an additional 0.39 percentage points to GDP growth during this period.
AFSA is a national trade association representing various sectors within the consumer credit industry including vehicle finance, personal installment lending, and mortgages among others. The association states its mission is "to protect consumer access to credit and preserve choice," and it is headquartered in Washington D.C., where it conducts member education and policy briefings while publishing research on consumer-finance regulation.
