U.S. Q3 GDP Revised to 3.3%
The economic news south of the border just seems to get better and better.
Figures released Wednesday by the U.S. Commerce Department the stateside economy’s growth rate last quarter was revised upward to the fastest in three years on stronger investment from businesses and government agencies than previously estimated.
Gross domestic product grew in the third quarter at a 3.3% annualized rate (est. 3.2%), revised from 3%, the fastest rate since 3Q 2014. Consumer spending, the biggest part of the economy, grew 2.3% (est. 2.5%); revised from 2.4%; down from 3.3% in the second quarter.
The latest results for GDP, the value of all goods and services produced, show the American economy withstood major hurricanes to reach a more solid footing as it entered the final stretch of the year, thanks to stronger business spending that’s helping cushion a softer pace of consumption.
While the revised growth rate is in line with President Donald Trump’s goal, economists generally see such a pace as unsustainable and expect growth to slow sometime in 2018. Trump and congressional Republicans are pushing a tax-cut plan with the aim of lifting GDP gains to 3% annually, though analysts expect any economic boost to be modest, on balance, if the proposal becomes law.