U.S. Economic Growth Unrevised At 3.5% In Q3

Economic growth in the U.S. was unrevised in the third quarter, according to the second reading released by the Commerce Department on Wednesday.

The report said real gross domestic product jumped by 3.5 percent in the third quarter, unrevised from the initial estimate and in line with economist estimates.

Upward revisions to non-residential fixed investment and private inventory investment were offset by downward revisions to consumer spending and state and local government spending.

The Commerce Department said consumer spending, which accounts for about 70 percent of the economy, surged up by 3.6 percent compared to the previously reported 4.0 percent spike.

The downwardly revised consumer spending growth reflects a slowdown from the 3.8 percent jump in the second quarter.

Overall GDP growth also slowed from the 4.2 percent increase in the second quarter, reflecting the slowdown in consumer spending growth as well as a downturn in exports and a deceleration in non-residential fixed investment.

A rebound in imports, which are a subtraction in the calculation of GDP, also contributed to the slowdown, while private inventory investment turned higher.

On the inflation front, the Commerce Department said its reading on core consumer prices, which exclude food and energy prices, showed price growth slowed to 1.5 percent in the third quarter from 2.1 percent in the second quarter.

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