The US economy grew at a 4% annual pace in the third quarter of 2004, a little faster than earlier estimated, the latest government figures show today. The Commerce Department had previously reported gross domestic growth of 3.9% in the quarter.
The slight improvement was because imports were not as high as first estimated, though corporate profits weakened.
Wall Street economists had forecast that third quarter growth would be unrevised at 3.9%.
Inflation remained muted despite signs that prices were starting to pick up. A measure favoured by Federal Reserve Chairman Alan Greenspan - personal consumption expenditures minus food and energy costs - gained at a 0.9% annual rate instead of 0.7% estimated a month ago.
Consumer spending, which fuels two-thirds of US economic activity, powered ahead at 5.1% annual rate in the third quarter, the same as estimated a month ago and more than three times the 1.6% increase in the second quarter.
The third quarter report was a final estimate for economic performance in the period and included some data that the department did not have a month ago.
Corporate profits took a tumble in the period, partly because of a series of hurricanes that wracked Southeastern states in the period. Overall profits after taxes fell 4.2% during the third quarter, the biggest percentage decline since the first quarter of 2003.
