Why 4.3% growth feels great on paper but not in your wallet

The jump shocked analysts. They expected closer to 3.2 percent, so the stronger number raised eyebrows around kitchen tables and trading floors. A lot of the jump came from consumer spending, which climbed 3.5 percent. Exports popped too. A 7.4 percent surge helped push growth higher, especially since imports dropped after fresh tariffs earlier in the year. That mix gave the headline number a lift. Government spending played a big part, mostly from higher defense outlays. That support filled gaps left by slower business spending. Here’s the split: Consumers spent more on health care. Companies cut back on intellectual property investment. Housing stayed stuck because rates stayed high. The twist came from rising prices. The Fed’s key inflation gauge climbed to 2.8 percent, up from 2.1 percent. That hit lower and middle income families harder, even while wealthier households kept swiping their cards. Some analysts worry the mood is shifting. Surveys show families pull back, and credit card data hints they start cutting non essentials. If that trend builds, next quarter won’t look like this one. We’ll see if this growth streak holds once holiday bills hit and the job market cools.