The US economy grew faster in the third quarter than initially expected, reflecting upward revisions to business investment and government spending, according to Bloomberg.
GDP rose at an upwardly adjusted annual pace of 5.2% in the third quarter, the fastest in nearly two years. Consumer spending increased at a less robust rate of 3.6%, according to the government's second estimate released on Wednesday.
On the other hand, the downward revision of household expenditures reflects the slowdown in growth in spending on services.ِ Also, business investment numbers were revised to record a growth of 1.3%, after previously reporting a decline, due to increased expenditures on restructuring.
The housing sector's performance was also stronger than initially reported.
Meanwhile, the government's other main indicator of economic activity - gross domestic income (GDI) - rose a more moderate 1.5%.
Consumer spending remained strong even though it was revised downward, supported by a solid jobs market and a wave of travel and events. It seems that this momentum has begun to subside as the end of the year approaches, although it is far from collapse.
The Federal Reserve's most closely followed indicator, the Personal Consumption Expenditures (PCE) Price Index revised to an annual rate of 2.8% in the third quarter, excluding food and energy, the index also fell to 2.3%.
The report also showed that Pre-Tax Corporate Profits recorded the largest increase in more than a year. Non-financial sectors contributed primarily to growth, although profits also rose in financial companies. Gross profit margins, also rose to 14.9%.
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