Economy expanded at 3.4% rate in third quarter in sign of underlying strength

The U.S. economy expanded at an inflation-adjusted annual rate of 3.4% during the third quarter, according to preliminary gross domestic product estimates from the Bureau of Labor Statistics. This growth represents the fastest pace in nearly three years and indicates an increase from the second quarter. This underlying economic strength is being fueled by the AI revolution and the wealth effect, marking a significant upward trend in the overall national economic performance for the period.