Official figures show that the US economy grew at a slightly slower pace than previously estimated in the third quarter.
Gross domestic product grew at a 2% annual rate in the three-month period, the Commerce Department said in its second estimate. This was down from the previously estimated 2.5%.
While the revision was below economists' expectations for an unchanged 2.5% figure, a breakdown of the report offered hopes for a stronger performance in the current quarter.
The figures showed that consumer spending remained solid. Businesses inventories also dropped for the first time since the fourth quarter of 2009.
Data so far suggest the fourth-quarter growth pace could exceed 3%, which would be the fastest in 18 months. Despite the downward revision, third quarter growth was still a step up from the April-June period's 1.3% pace.
The government revised third-quarter output to account for an $8.5 billion drop in business inventories, which lopped off 1.55 percentage points from GDP growth. Inventories had previously been estimated to have increased $5.4 billion.
The drag from inventories was offset by strong export growth. Excluding inventories, the economy grew at an unrevised brisk 3.6% pace after expanding 1.6% in the second quarter.
Consumer spending was revised slightly down to a 2.3% growth pace from 2.4% because of adjustments to motor vehicle fuels and lubricants. It was still the quickest pace since the fourth quarter of 2010.
But real disposable income fell 2.1% in the third quarter after declining 0.5% in the previous three months.
There was also a small revision to business investment, which rose at a 14.8% rate instead of 16.3% as estimates for investment in non-residential structures and outlays on equipment and software were lowered.
Export growth was stronger than previously estimated, rising at a 4.3% rate instead of 4%. Imports increased at a much slower 0.5% rate rather than 1.9%. Residential construction growth was revised down, as was government spending.
The GDP report also showed inflation pressures subsiding. A price index for personal spending rose at a 2.3% rate in the third quarter, instead of 2.4%. A core inflation measure, which strips out food and energy costs, rose at a 2% rate rather than 2.1%. This measure is closely watched by the Federal Reserve.
