Economic activity in the U.S. unexpectedly grew at a slightly slower than previously estimated rate in the third quarter, according to a report released by the Commerce Department on Thursday.
The report said real gross domestic product surged up by 3.2 percent in the third quarter compared to the previously estimated 3.3 percent jump. Economists had expected the pace of growth to be unrevised.
The Commerce Department said the downward revision to the pace of GDP growth primarily reflected slightly slower than previously estimated consumer spending growth.
Consumer spending climbed by 2.2 percent in the third quarter compared to the previously reported 2.3 percent increase.
The downward revision to consumer spending was partly offset by an upward revision to state and local government spending.
Despite the downward revision, the GDP growth seen in the third quarter still reflects a modest acceleration from the 3.1 percent increase in the second quarter.
An acceleration in private inventory investment and an upturn in state and local government spending were partly offset by decelerations in consumer spending, non-residential fixed investment, and exports.
A reading on core consumer prices, which exclude food and energy prices, showed that the pace of price growth accelerated to 1.3 percent in the third quarter from 0.9 percent in the second quarter.
by RTT Staff Writer
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