A report released by the Commerce Department on Wednesday showed stronger than previously estimated U.S. economic growth in the third quarter.
The report said real gross domestic product surged up by an upwardly revised 3.3 percent in the third quarter compared to the originally reported 3.0 percent jump. Economists had expected the increase in GDP to be upwardly revised to 3.2 percent.
With the bigger than expected upward revision, the GDP growth in the third quarter is now stronger than the 3.1 percent increase seen in the second quarter.
The Commerce Department said the stronger than previously estimated third quarter GDP growth reflected upward revisions to non-residential fixed investment, state and local government spending, and private inventory investment.
The acceleration in GDP growth compared to the previous quarter reflected an acceleration in private inventory investment, a downturn in imports, and smaller decreases in state and local government spending and residential fixed investment.
Meanwhile, the report said the pace of growth in consumer spending slowed to 2.3 percent in the third quarter from 3.3 percent in the second quarter. Growth in non-residential fixed investment and exports also slowed.
Paul Ashworth, Chief U.S. Economist at Capital Economics, said, "After a good third-quarter, the survey and early monthly evidence point to another decent gain in GDP in the fourth quarter of between 2.5% and 3.0% annualized."
A reading on core consumer prices, which exclude food and energy prices, showed that the pace of price growth accelerated to 1.4 percent in the third quarter from 0.9 percent in the second quarter.
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