The Federal Reserve Bank of Atlanta said its GDPNow model now projects US real gross domestic product to expand at a 3.5% seasonally adjusted annual rate in the third quarter of 2025, up sharply from the 2.2% pace estimated on Aug. 26. The update, released on Aug. 29, signals a stronger near-term outlook for economic growth than suggested just three days earlier. The model’s upward revision follows recent government data showing firmer consumer spending and business investment, as well as an expected swing in net exports from a drag to a modest boost. GDPNow is a purely data-driven nowcast rather than an official forecast by the Atlanta Fed or the Federal Open Market Committee, but it is closely watched by investors as an early gauge of momentum ahead of the Bureau of Economic Analysis’ first official GDP estimate due in late October.