US economy grew 4.1% in third quarter

The Commerce Department says the US economy grew at a 4.1 per cent annual rate in the third quarter.

The US economy grew at a robust 4.1 per cent annual rate in the third quarter, much faster than previously estimated, the Commerce Department says.

The department's final estimate of gross domestic product growth was sharply higher than the 3.6 per cent pace in its prior assessment of expansion in the world's largest economy.

The upward revision surprised analysts who on average expected the department would leave the 3.6 per cent figure unchanged.

In the second quarter, GDP increased at a 2.5 per cent rate.

Consumer spending that was much stronger than initially believed led the revised estimate, the department said.

The spending, which accounts for about two-thirds of US economic activity, rose 2.0 per cent in the third quarter, 0.6 percentage point higher than the prior estimate.


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Source: AAP


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