U.S. Economy Grows 3.4%; Silver Trades at $52.48 on Thursday

Key Facts

Advance estimates showed U.S. real gross domestic product grew at an annual rate of 3.4% in the third quarter of 2026, after growing 2.2% in the second quarter, according to the U.S. Bureau of Economic Analysis. In a Thursday morning market snapshot on October 29, spot silver ranged between $52.48 and $54.51 an ounce, and the bid price was $52.55 in the published update. This followed the Federal Reserve's October 28 decision to keep its target interest-rate range at 3.75% to 4%. Two committee members voted to raise the range, dissenting from the decision. Economic growth and the rate decision, alongside inflation data, put U.S. activity and monetary policy at the forefront of indicators tracked by markets.

Third-quarter growth was faster than in the previous quarter, but the components of expansion had differing effects. The Bureau of Economic Analysis said increases in investment, consumer spending and government spending supported GDP, while a decline in exports partly offset them. The bureau attributed the acceleration in growth mainly to faster investment and a shift in government spending to an increase. It also noted that the drop in exports offset some of the impact of those two factors. These components break down the sources of the increase in GDP during the quarter and show that domestic spending was not the only factor in the overall result.

Real final sales to private domestic purchasers, the sum of consumer spending and private fixed investment, rose at an annual rate of 4.9% in the third quarter, compared with a 4.6% increase in the second quarter, according to the Bureau of Economic Analysis. This indicator provides a reading on domestic private spending within the GDP breakdown, alongside figures for investment, government spending and exports. On prices, the personal consumption expenditures price index rose 2.1% in the third quarter, compared with an increase of 5.0% in the comparison period cited in the release. The index excluding food and energy also rose 2.5% in the third quarter. The release thus shows different readings for the headline index and its measure excluding food and energy in the GDP estimate.

At its October 28 meeting, the Federal Open Market Committee kept the federal funds rate target range at 3.75% to 4% and approved the statement by a 10-to-2 vote, according to the Federal Reserve. Lisa Cook and Beth Hammack dissented, preferring to raise the target range by 0.25 percentage points. The vote shows a split within the committee over the level of interest rates at the meeting, while the target range remained unchanged. The dollar was steady in Asian trading on Thursday after rates were held, according to a Reuters report carried by Investing.com. The report added that investors were awaiting inflation data that could affect future monetary policy decisions.

The Bureau of Economic Analysis will release its second estimate of third-quarter GDP on November 25, 2026, at 8:30 a.m. Eastern Time, alongside corporate earnings data, according to the bureau's schedule. The upcoming release follows the advance estimate, which put growth at 3.4%, compared with 2.2% in the second quarter. The second estimate will provide a subsequent reading on GDP for July through September. The release date also allows investors to track the earnings data listed alongside it in the schedule. In the meantime, investors are watching the inflation data cited in the Reuters report as potentially affecting future monetary policy decisions.