The U.S. economy is experiencing significant growth, with the Commerce Department revising third-quarter GDP to a 4.4% annual pace, following a 3.8% growth in the second quarter. This marks the strongest back-to-back quarters of growth since 2021.
Consumer spending rose at a 3.5% annual rate, and corporate activity remained resilient amid elevated interest rates. Despite challenges such as a widening trade deficit, the broader growth trend persists, supported by tax cuts, strong consumer demand, and substantial onshoring activity estimated at $20 trillion.
Looking forward, projections for 2026 suggest the possibility of reaching 6% annualized GDP growth in the latter half of the year, driven in part by a rotation in market leadership, particularly towards small-cap stocks that surged 7% in January, outpacing larger indices.
