The U. S. Economy: Strong Growth Amid Challenges

The U. S. economy showed impressive growth in the third quarter of 2025, expanding at a 4. 3% annual rate. This growth was driven by military spending and a significant increase in corporate profits. Despite this growth, there are concerns about the economy's health. Consumer sentiment remains low, and the job market is showing signs of weakness. These factors could impact future growth.Disposable personal income, after taxes and adjusted for inflation, remained flat. This suggests that price increases are still affecting people's purchasing power. However, a key measure of underlying growth, which includes private investment and household consumption, remained strong. Business investment, particularly in AI systems, cooled down. This could be a sign of uncertainty in the business sector. Overall, the economy is performing well, but there are challenges ahead.