Is my Social Security income taxable? Guidelines to follow for the 2026 tax season.
Are your Social Security benefits taxable? For many Americans, the answer is yes.
The U.S. economy expanded strongly in the third quarter, just before the federal government shutdown threatened to derail growth and employment.
The Department of Commerce announced on Tuesday, Dec. 23, that gross domestic product (GDP) grew at an annualized rate of 4.3% last quarter. The figure was the first estimate of GDP for the third quarter, delayed by the government shutdown. GDP estimates will be revised as additional data becomes available.
The figure was significantly higher than the 3.3% annualized increase expected by economists compiled by Trading Economics.
GDP is a measure of all goods and services produced in an economy. To measure the strength of the economy as a whole, or its components, we compare the growth rate of a given quarter with the same period a year ago.
The 4.3% growth in late summer “reflects increases in consumer spending, exports, and government spending, partially offset by declines in investment,” the Commerce Department said in a news release. Imports decreased in the quarter.
“The strong third quarter is unlikely to be sustained,” Oliver Allen, senior U.S. economist at Pantheon Macroeconomics, said in an analysis published after the announcement.
Allen added: “Growth truly appears to be underpinned by continued consumer resilience and the AI (capex) boom, even though the revised results show GDP growth in 2025 will be slightly lower than the latest numbers.” “However, there are clear signs that the tide has turned in the fourth quarter, particularly in consumption.”
In a separate release after the GDP data, the Private Sector Conference Board said consumer confidence declined in December.
“Confidence declined for the fifth consecutive month as business sentiment remained negative and concerns about jobs and incomes deepened,” the Conference Board said. One of the subcomponents of the group-wide index “has now remained below 80 for 11 consecutive months, below which there are signs of recession,” the release said.
“The fourth quarter will be an unmitigated catastrophe, with the federal government shutdown hitting hard,” Christopher S. Rupkey, chief economist at FWDBONDS LLC, said in a client note. “The market has never seen economic data fail so badly. It’s a miracle economic activity hasn’t fallen so far, given that unemployment is the highest it’s been in years.”
Still, Rapkey also emphasized that the ongoing boom in AI spending is good for the economy. “Stay tuned,” he concluded.
