Economic Report: U.S. economy grew at revised 3.2% rate in third quarter

by | Dec 22, 2022 | Stock Market

The numbers: The U.S. expanded at an annual 3.2% annual rate in the third quarter, a more robust pace of growth than previously reported, new government figures show. The latest revision paints a picture of an economy expanding at steady a slower pace compared to last year, but not on the cusp of recession.

The increase in gross domestic product, the official scorecard for the economy, initially was reported at 2.6% and updated to 2.9% last month. GDP had shrunk in the first two quarters of the year, but mainly due to technical reasons based on the how the report is composed instead of any underlying weakness in the economy. The economy is also forecast to expand again in the final three months of the year, with estimates ranging from 1% to 3%. All figures are adjusted for inflation. Key details: The main engine of the economy, consumer spending, increased at a solid 2.3% annual clip in the third quarter, the government said. Previously the increase was put at a 1.7%. The upward revision in consumer spending largely accounted for the stronger GDP print in the third quarter. The largest contribution to growth in the third quarter, however, came from a steep drop in the trade deficit. Smaller deficits add to GDP. Other segments of th …

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