- 1440 Daily Digest
US GDP Grows
The US economy grew faster than previously estimated during the third quarter of this year, according to new data released yesterday. The country's gross domestic product, which measures the value of goods and services produced (see 101), grew at a 2.9% annualized rate from July to September, up from an earlier estimate of 2.6%. Economists had predicted 2.7%.
The latest figure marks a rebound from 0.6% and 1.6% decreases in the first two quarters of the year. The upward revision is due to growth in consumer spending and business investments as well as declines in imports, though low private investment inventories offset some of the growth. See data here.
While the report shows signs of a strengthening economy, analysts say ongoing high inflation and interest rate hikes from the Federal Reserve may slow growth in the fourth quarter, highlighting investments in housing, which shrank at a 26.8% annualized rate.