EDITORIAL: GDP shines, but consumers remain grumpy

The third-quarter GDP report delivered a surprise that deserves applause. At a time when recession fears have lingered and economic confidence has faltered, the U.S. economy grew at an annual rate of 4.3 percent late last year. It is the strongest growth in two years and far better than almost anyone predicted.

As Diccon Hyatt reported for Investopedia, the economy easily beat predictions of about 3.2 percent growth and topped the 2.6 percent average of the past four years. Consumer spending, the backbone of the economy, picked up sharply. Imports fell, which boosts GDP and reflected the effects of tariffs. Exports and government spending rose, as well. The result was a strong, broad showing that forced skeptics to take notice.

For the Trump administration, the takeaway should be simple: Enjoy the good news, then act quickly.

Growth at this pace lifts wages, supports jobs and improves living standards. As Mr. Hyatt notes, however, sustained growth would signal a stronger long-term outlook. Voters may not track every economic indicator, but they know when paychecks feel steadier and opportunities feel real. Right now, the economy is giving the administration momentum it did not expect.

But concerns about “affordability” remain. The third-quarter momentum is not guaranteed to last. Mr. Hyatt also makes it clear that tariffs played a messy role in this surge. Imports dropped in part because businesses and consumers rushed to buy goods earlier in 2025 to avoid higher tariffs later. That buying spree helped boost recent growth, but it also borrowed demand from the future. This represents a warning sign about the tariffs down the road.

That is why this moment demands smarter policy choices, not self-congratulation. Tariffs may produce short-term wins on paper, but they are an unreliable foundation for lasting growth. If the administration wants this expansion to survive beyond a single quarter, it needs to shift its focus to tax and regulatory reform. Lowering taxes, simplifying rules and reducing regulatory drag would encourage businesses to invest, hire and expand for the right reasons, not because they are scrambling to stay ahead of policy changes.

It would also construct a basis for increased economic opportunity and improved consumer confidence. The political stakes are high for Republicans and the White House. Midterm elections are rarely kind to parties that squander good economic news. Voters reward leaders who turn strong numbers into durable prosperity. They punish those who rely on temporary boosts that fade as quickly as they appear. A serious push for tax and regulatory reform would show voters that the administration understands the difference.

The third quarter showed the economy has more strength than many expected. Now the question is whether President Donald Trump will turn that momentum into something lasting or allow it to slip away. Long-term growth does not come from short-term moves. It comes from policies that keep the economy growing steadily and benefit more Americans.