The US economy is expected to have expanded at an annualized rate of 3.2% in Q3 2026, marking its fastest growth in a year, following a 2.2% increase in Q2. The projected acceleration would underscore the economy’s resilience despite elevated interest rates and persistent geopolitical uncertainty, supported by robust consumer spending, strong investment in AI, inventory accumulation ahead of the holiday season, and the lingering effects of tax cuts and tariff refunds to businesses. According to the Atlanta Fed’s GDPNow estimate, growth is expected to be driven by strong increases in personal consumption (3.8%), equipment investment (20.9%), intellectual property investment (6.6%), nonresidential structures (6.7%), and government spending (2.5%). In contrast, residential investment is projected to contract further, declining 3.6%. Net trade is also expected to weigh on growth, with exports forecast to fall 2.5% while imports are projected to surge 19.5%.