U.S. Economy Grows 3.4% in Third Quarter as Private Demand Accelerates to 4.9%
Key Facts
U.S. real gross domestic product grew at an annual rate of 3.4% in the third quarter of 2026, from July to September, according to the initial estimate released by the U.S. Bureau of Economic Analysis on October 29. Growth accelerated from 2.2% in the second quarter, the bureau said. The statement said the increase reflected gains in investment, consumer spending and government spending. A decline in exports offset part of those gains, while imports rose during the quarter. The estimate provides an initial reading of the economy’s performance in the quarter; the bureau will release a second estimate at a later date.
The Bureau of Economic Analysis attributed GDP growth to contributions from three components: investment, consumer spending and government spending. Exports, by contrast, declined, partly limiting the effect of those contributions, according to the bureau’s statement. The statement also said imports rose in the third quarter. This places movements in exports and imports among the components of the quarter’s foreign trade reading, alongside the domestic sources of growth cited by the bureau. The statement did not link these components to American Coastal Insurance’s results or the insurance sector’s performance.
Real final sales to private domestic purchasers 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. The measure captures domestic private demand and accelerated during the same period that overall GDP growth rose from 2.2% to 3.4%. It provides a parallel reading of GDP components that include investment and consumer spending, while the bureau also cited an increase in government spending among the quarter’s contributions. These figures remain part of the initial estimate released on October 29.
The pace of increase in the personal consumption expenditures price index slowed to 2.1% in the third quarter, from a 5.0% increase in the second quarter, the bureau said. The core index, which excludes food and energy, rose 2.5% in the third quarter after increasing 3.3% in the previous quarter. The third-quarter reading thus combines faster economic growth with slower increases in both indexes compared with the second quarter. These rates apply to the two periods specified in the initial estimate; the bureau reported both quarters’ figures at annual rates.
For American Coastal Insurance, EL7’s data record showed the company’s stock closed at $10.87 on October 28, 2026. Closing prices fell from $11.39 on October 22 to $11.08 on October 23, then stood at $11.13 on October 26 and $10.94 on October 27, before closing at $10.87 on October 28. These moves came before the company’s scheduled results announcement, which American Coastal set for after the market close on October 29. The price series cited here therefore predates the announcement and does not represent a reaction to it. The price record did not include the stock’s daily trading range.
American Coastal operates as a property and casualty insurance holding company, targeting commercial residential properties in areas where the company says catastrophe risks have led large national insurers to reduce their policy concentrations. The company said its risk management relies on advanced pricing algorithms, avoiding policy concentration and a comprehensive catastrophe reinsurance program. This description places the company’s operational focus on pricing, risk distribution and reinsurance. It had announced that it would release results for the third quarter ended September 30 after the market close on Thursday, October 29, with an earnings call at 5 p.m. Eastern Time the same day.
In the broader economic context, the Bureau of Economic Analysis scheduled November 25, 2026, for the release of its second estimate of third-quarter GDP and corporate profits. That will follow the initial estimate released on October 29, which recorded annual growth of 3.4%, compared with 2.2% in the second quarter. The scheduled release includes corporate profits data alongside the second estimate of GDP, according to the bureau’s calendar. The available evidence does not include the outcome of American Coastal’s announcement scheduled for October 29, or verified figures for its revenue and earnings per share.