The world's
largest economy grew even faster than initially thought in the third quarter,
based in large part on a jump in spending, the US Commerce Department said
Tuesday.
According to a
revised GDP report, the economy grew at an annual rate of 3.2 percent,
three-tenths higher than the initial estimate published last month, which was
already the fastest rate in two years.
A consensus
analyst forecast had called for a more modest upward revision to 3.0 percent,
from the 2.9 percent initial estimate.
The results
showed an even more emphatic upswing at the start of the second half of 2016.
Anemic growth in the first half helped convince US monetary policymakers to
forego a planned course of interest rate hikes during the year.
However, the
US Federal Reserve is widely expected to increase rates from their historically
low levels when it meets next month.
Based on a
more comprehensive set of data, the revised GDP showed US consumers spent more
on construction for single-family housing, while investment in non-residential
structures was revised upwards to 10.1 percent from 5.4 percent.
In a
statement, the White House noted that economic conditions abroad had not held
back foreign sales, but acknowledged some temporary factors pushing exports.
"Exports,
which have faced substantial headwinds in recent years from slow growth abroad,
grew at an annual rate of 10.1 percent in the third quarter, boosted in part by
transitory factors," said Jason Furman, chairman of the Council of Economic
Advisors.
The data
showed spending on durable goods rose 2.8 percent over the second quarter, 0.7
points more than previously estimated.
Sharp gains in
consumer spending on auto parts and retail sales in "other"
non-durable goods, also boosted growth, including newly available data from the
Bureau of Alcohol Tobacco and Firearms.
The personal
consumption expenditures price index was unchanged at 1.4 percent.
Jim O'Sullivan
of High Frequency Economics cautioned against putting too much confidence in
the upward revisions, saying the strength of the economy appeared
"exaggerated."
"We don't
think the underlying trend has suddenly moved up sharply," he wrote in a
research note. "Still, there is certainly no sign of weakening."
AFP
Follow Solenzo Blog on
0 Comments