The U.S. economy grew much faster in the third quarter than originally reported, as the Gross Domestic Product (GDP) was revised to 2.7 percent from the original estimate of 2.0 percent, according to the U.S. Commerce Department.
That’s the fastest rate of growth since a 4.1-percent spurt in the fourth quarter of 2011 and the best third-quarter performance in five years.
The quarter’s improved performance stemmed from higher exports and a larger increase in corporate inventories.
However, consumer spending was revised downward to 1.4 percent from 2 percent, and business investment in capital goods was revised to a 2.2-percent decline from a 1.3-percent drop, suggesting that the third quarter’s jump in GDP may not be sustainable in the fourth quarter.
Meanwhile, the number of people who filed new applications for unemployment benefits fell sharply for the second straight week as the effects of Hurricane Sandy continued to fade. Initial jobless claims dropped by 23,000 to a seasonally adjusted 393,000 in the week ended Nov. 24, the U.S. Labor Department said.
