The US economy expanded more than expected in the third quarter but growth remained well below the pace of the second quarter, according to Commerce Department data released today.
In the three months from July to September, gross domestic product - the broad measure of the economy's output of goods and services - rose at a revised annual rate of 2.1%.
This was stronger than the 1.5% pace initially estimated.
Though GDP growth was a bit stronger than the 2% rate expected by analysts, it still marked a slowdown from the robust 3.9% expansion in the second quarter. And the mix of the fresh data was less positive.
The revision was largely due to a smaller decrease in private inventory investment than previously estimated, which offset downward revisions, notably to consumer spending.
Consumer spending, which drives about two-thirds of the activity in the US economy, rose 3% in the third quarter, instead of the 3.2% previously estimated.
