Q3 GDP Growth Unrevised At 4.9%, In Line With Estimates
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(RTTNews) - The Commerce Department released its final report on gross domestic product in the third quarter on Thursday, showing that the pace of GDP growth for the quarter was unrevised compared to the preliminary estimate.
The report showed that GDP increased at an annual rate of 4.9 percent in the third quarter compared to the 3.8 percent growth seen in the second quarter. Economists had expected GDP growth to remain unchanged at 4.9 percent.
The GDP growth in the third quarter marked the fastest pace of growth since the third quarter of 2003, when GDP surged up 7.5 percent.
The acceleration in the pace of GDP growth compared to the previous quarter primarily reflected accelerations in exports, consumer spending, and private inventory investment.
At the same time, an upturn in imports, a larger decrease in residential fixed investment, and a deceleration in nonresidential structures partly offset the acceleration.
The report showed that the pace of consumer spending growth was revised up modestly to 2.8 percent from the preliminary reading of 2.7 percent growth. This represents a significant acceleration from 1.4 percent in the second quarter.
The Commerce Department also said that its reading on core consumer prices, which exclude food and energy prices, was upwardly revised to show 2.0 percent growth compared to the previously reported 1.8 percent growth.
Including food and energy prices, consumer prices rose 1.8 percent in the third quarter, which represent an upward revision from the preliminary estimate of 1.7 percent growth.
While the upward revision to the pace of consumer price growth may add to recent inflation worries, the report is largely seen as old news.
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Originally Posted by JoeGraft
