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- U.S. economy grow faster than initially thought in Q3
U.S. economy grow faster than initially thought in Q3
U.S. economy
grow faster than initially thought in Q3
A report from
the Commerce Department showed on Wednesday that the U.S. economy grew faster
than initially thought in the third quarter, due to upward revisions to private
inventory investment, nonresidential fixed investment, and personal consumption
expenditures (PCE), which, however, were partially offset by a downward
revision to state and local government spending.
According to
the second estimate, the U.S. gross domestic product (GDP) grew at a 2.1 percent
annual rate in the third quarter, faster than 1.9 percent reported in the
advance estimate.
Economists had
expected the growth rate to come in at 1.9 percent, following the second
quarter's increase of 2.0 percent.
The increase in
real GDP in the third quarter reflected positive contributions from PCE,
federal government spending, residential investment, private inventory
investment, exports, and state and local government spending that were partly
offset by a negative contribution from nonresidential fixed investment.
Imports, which are a subtraction in the calculation of GDP, rose
Meanwhile, the acceleration
in real GDP in the third quarter reflected upturns in private inventory
investment, exports, and residential fixed investment. However, these upturns were
partly offset by decelerations in PCE, federal government spending, and state
and local government spending, and a larger drop in nonresidential fixed
investment.
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