The Bureau of Economic Analysis revised its third quarter real Gross Domestic Product (GDP) figure higher, with the U.S. economy growing an annualized rate of 3.9 percent.
It was originally estimated to have grown by 3.5 percent, and the latest figure exceeded consensus expectations, with economists anticipating a revision down to 3.3 percent.
The revision reflected upward revisions for consumer and business spending and on inventory investment.
“Overall, these data reflect a number of strengths in the U.S. economy. Consumer spending rose 4.3 percent in the third quarter, extending the 5.9 percent gain seen in the second quarter,” said Chad Moutray, chief economist for the National Association of Manufacturers. “As such, these data indicate that demand has rebounded strongly since the weather-induced softness experienced in the first quarter. Personal consumption expenditures contributed 1.51 percentage points to real GDP in the third quarter, with durable and nondurable goods adding 0.63 percent and 0.34 percent, respectively…In conclusion, the U.S. economy expanded at a relatively healthy pace in the third quarter, and it is a sign that demand and output have largely recovered from weaknesses earlier in the year. While we continue to see softness in the global economy, U.S. manufacturers remain mostly upbeat about the next few months. These data reflect such sentiments, with decent growth in consumer spending, business investment and exports.”