The US economy grew at an annual rate of 2% in the third quarter of this year, the US government reported today in a slight downward revision of gross domestic product.
The Commerce Department, in its final revision of growth in the July-September quarter, notched down its earlier estimate of 2.2%. Most Wall Street analysts had expected no change.
The growth was the slowest since the final quarter in 2005 and a deceleration from the 2.6% pace in the second quarter. The revision came from a slight downward adjustment in the estimate of consumer spending growth in the quarter to 2.8% instead of 2.9%.
Spending on residential property plunged 18.7%, revised from an earlier estimate of an 18% drop, the steepest drop since 1991.
An inflation index linked to GDP showed a 2.4% increase in prices, and was unrevised after a 4% jump in the second quarter. Core prices excluding food and energy were up 2.2%, slightly ahead of the Federal Reserve's unofficial target but suggesting that the central bank's view of easing inflationary pressures is correct.
