Figures released on the last Friday before Christmas shows Americans’ spending grew by more than previously reported in the third quarter, a change offset by a drag in inventories that left economic growth at a still-healthy but unrevised 2.1%.
The Commerce Department said consumer outlays, which make up two-thirds of the economy, rose at a 3.2% annualized pace in the July-September period, up from a previously reported 2.9% gain.
The figures indicate spending was even more important than previously thought in helping the U.S. economy eke out a pickup from the second quarter’s 2% growth, as business investment fell by the most since 2015. Consumption is forecast to slow in the fourth quarter, however, and November figures due later Friday will give a sense of the depth of any weakness.
The change to the consumer-spending figure reflected upward revisions to spending on personal care and financial services, particularly portfolio management and investment advice. Inventories were revised lower on wholesale trade, especially non-durable goods, according to the report.
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