The U.S. Bureau of Economic Analysis reported that real GDP in the United States grew at an annual rate of 3.4% during the third quarter of 2026. This outpaced the 2.2% growth from the previous quarter. Investment and consumer spending, along with government expenditures, pushed the expansion forward. A drop in exports trimmed some of these gains, while imports hit new highs and pushed the trade deficit wider. The Bureau of Economic Analysis (BEA) releases GDP figures in a series of estimates, with the "final estimate" as the third and most complete version for each quarter. Official GDP reporting is coordinated with the U.S. Census Bureau's Economic Indicators Division, and the BEA maintains a formal release calendar for economic data.
September's trade deficit reached $105 billion, a slight improvement from the revised $105.7 billion in August. Both exports and imports increased over the month. Exports totaled $321.5 billion, while imports set a record at $426.6 billion. The largest trade surpluses were with the Netherlands at $7.7 billion and South and Central America at $6.2 billion. The United Kingdom followed at $3.0 billion. The most significant deficits were with Mexico at $28.7 billion and Vietnam at $25.3 billion, with Taiwan at $21.9 billion. Trade statistics come from coordinated federal statistical programs, including the Census Bureau's Economic Indicators Division and the BEA, and are revised as more complete data arrives.
Inflation and Producer Prices
Inflationary pressures stayed high in September. The Producer Price Index (PPI) rose 1.3% on a seasonally adjusted basis, the largest monthly jump since March 2022. Final demand goods prices climbed 2.6%, mainly due to a 10.8% spike in energy costs. Food prices went up 1.2%, and final demand services advanced 0.8%. Transportation and warehousing services increased 3.4%. Over the past 12 months, the unadjusted PPI rose 5.0%. The U.S. Bureau of Labor Statistics releases official PPI data, distinguishing between seasonally adjusted monthly changes and unadjusted 12-month changes.
Energy prices played a major role in the September Consumer Price Index (CPI), which increased 0.6% for the month. The energy index rose 5.2%, while food prices stayed flat. Excluding food and energy, the CPI rose 0.3%. The annual inflation rate reached 3.7% in September, up from 3.4% in August. Energy costs made up more than half of the monthly CPI increase, with a 20.4% rise over the year. Food prices rose 2.5%, and all items less food and energy increased 2.6%. These trends match patterns reported earlier on persistent inflation driven by energy and service costs. The Consumer Price Index is compiled and published by the U.S. Bureau of Labor Statistics, which provides detailed breakdowns of monthly and annual changes in consumer prices.
Housing and Household Trends
Phoenix housing prices continued to trail national averages. The S&P; Cotality Case-Shiller Index showed Phoenix home prices up just 0.4% year-over-year in August. Nationally, prices increased 2.1%, and the 20-city composite gained 2.7%. Chicago led major metropolitan areas with a 6.7% annual increase, followed by New York at 6.2%. Cleveland posted a 4.3% gain, and Miami 4.2%. Five metro areas saw year-over-year declines. Seattle had the largest drop at -2.0%, and Las Vegas at -1.3%.
The 2025 American Community Survey (ACS) one-year estimates, released in late October, brought new data on electric vehicles, solar panels, and sewer connections. About 122.3 million U.S. households reported access to at least one vehicle. Of these, 7.3 million (5.5%) owned all-electric or plug-in hybrid vehicles. California led in electric vehicle adoption, with 13.8% of households reporting at least one electric vehicle. Washington, Hawaii, and Nevada followed. Arizona's share was 6.1%, while North Dakota had the lowest at 1.3%.
Solar panel adoption was highest in Hawaii at 30.4% of homes. California followed at 17.1%, and both Arizona and Nevada at 11.8%. North Dakota and South Dakota reported just 0.6% of homes with solar panels. Arizona also ranked among the states with the highest proportion of homes connected to public sewer systems, reflecting newer construction trends.
The next estimate for third quarter GDP is set for release on November 25, which will provide updated figures on the nation's economic direction. The BEA's process of issuing preliminary, revised, and final estimates ensures that GDP data reflect the most current and comprehensive information available, as defined in the agency's official glossary.
