The economy south of the border took something of a breather in the third quarter as previously reported, but the pace was likely strong enough to keep growth on track to hit the Trump administration's 3% target this year.
The U.S. Commerce Department said gross domestic product increased at a 3.5% annualized rate, unchanged from its estimate in October and well above the economy's growth potential, which economists estimate to be about 2%.
The American economy grew at a 4.2% pace in the second quarter. While businesses accumulated inventory at a faster pace and spent more on equipment than initially thought in the third quarter, that was offset by downward revisions to consumer spending and exports.
Economists had forecast third-quarter GDP growth unrevised at 3.5%.
Experts attribute this growth in part to the White House's $1.5-trillion tax cut package, which gave consumer spending a jolt and also spurred business investment. The fiscal stimulus is part of measures adopted by President Donald Trump's administration to boost annual growth to 3% on a sustainable basis.
The government also reported on Wednesday that after-tax corporate profits increased at a 3.3% rate last quarter after rising at a 2.1% pace in the second quarter.
