The stateside economy grew at its fastest pace in more than two years in the third quarter, powered by robust business spending, and is poised for what could be a modest lift next year from sweeping tax cuts passed by Congress this week.
Figures released by the U.S. Commerce Department revealed gross domestic product expanded at a 3.2% annual rate last quarter. While that was slightly down from the 3.3% rate reported last month, it was the quickest pace since the first quarter of 2015 and was a pickup from the second quarter's 3.1% rate.
It also marked the first time since 2014 that the economy experienced growth of 3% or more for two straight quarters. But the growth pace for the July-September period likely overstates the health of the economy.
An alternate measure of growth, gross domestic income (GDI), rose at a 2% t rate in the third quarter. GDI was previously reported to have increased at a 2.5% rate.
The average of GDP and GDI, also referred to as gross domestic output and considered a better measure of economic growth, increased at a 2.6% rate instead of the previously reported 2.9% pace.
