‘Economic golden age’: Donald Trump hails Q3 GDP beat as proof of tariffs push; inflation and jobs data add caution

US President Donald Trump on Tuesday seized on stronger-than-expected third-quarter growth to claim an “economic golden age,” arguing that tariffs and his tax policies were driving a sharp acceleration in activity even as official data pointed to lingering inflation pressures and a softening labour market.In a post on Truth Social, Trump said the US economy’s 4.3% annualised growth rate in the July–September quarter had “BLOWN PAST expectations” and credited his policies for the performance. “The SUCCESS is due to Good Government, and TARIFFS,” he wrote, adding that “Consumer spending is STRONG, Net Exports are WAY UP, Imports and Trade Deficits are WAY DOWN, and there is NO INFLATION.” He also claimed that investment was “SETTING RECORDS” because of his tax bill and tariffs, declaring that the “Trump Economic Golden Age is FULL steam ahead.”The Commerce Department’s data showed that gross domestic product expanded at a 4.3% annual rate in the third quarter, accelerating from 3.8% growth in the April–June period and comfortably beating forecasts of around 3%, according to analysts surveyed by FactSet. It was the first of three official estimates for the quarter, released after delays linked to the government shutdown.Growth was supported by robust consumer spending, exports and government outlays. Consumer spending, which accounts for roughly 70% of US economic activity, rose at a 3.5% annual pace, up from 2.5% in the previous quarter. Exports increased at an 8.8% rate, while imports fell 4.7%, providing a boost to headline GDP.A measure of the economy’s underlying strength — combining consumer spending and private investment while excluding volatile components such as inventories, trade and government spending — grew at a 3% annual rate, slightly higher than the 2.9% pace recorded in the second quarter.However, the growth report also showed that inflation remains above the Federal Reserve’s comfort zone. The Fed’s preferred inflation gauge, the personal consumption expenditures (PCE) index, rose at a 2.8% annual pace in the third quarter, up from 2.1% in the previous quarter. Core PCE inflation, which strips out food and energy prices, climbed to 2.9% from 2.6%.The labour market data has also been mixed. The government reported last week that the US economy added 64,000 jobs in November but lost 105,000 in October, while the unemployment rate rose to 4.6%, the highest level since 2021. Despite inflation staying above the Fed’s 2% target, the central bank cut its benchmark interest rate three times toward the end of 2025, citing concerns about slowing momentum in hiring.