The U.S. economy grew more quickly than previously stated in the third quarter due to stronger trade, faster health care spending and increased local government construction, the U.S. Commerce Department reported today.
The agency said the July-through-September gross domestic product grew at a seasonally adjusted annual rate of 3.1 percent in the third quarter, which is the fastest rate of growth since the 4.1-percent pickup in the final quarter of 2011.
The GDP numbers were well ahead of the government’s initial estimate of 2-percent growth.
Personal consumption is now pegged to have grown at a 1.6-percent rate, up from a previously estimated 1.4-percent rate and faster than the 1.5-percent advance in the second quarter.
Business investment was a drag in the third quarter, dropping by 1.8 percent. Companies have said they postponing decisions on investment until they know whether the looming fiscal cliff of tax hikes and spending cuts is avoided.
