2021.11.2413:30:00UTC+00U.S. Economic Growth Slightly Stronger Than Initially Estimated In Q3

Revised data released by the Commerce Department on Wednesday showed the U.S. economy grew by slightly more than previously estimated in the third quarter.

The Commerce Department said real gross domestic product advanced by 2.1 percent in the third quarter compared to the previously reported 2.0 percent increase. Economists had expected the pace of GDP growth to be upwardly revised to 2.2 percent.

Despite the slightly stronger than previously estimated increase, the GDP growth in the third quarter still reflects a substantial slowdown from the 6.7 percent spike in the second quarter.

The report said upward revisions to consumer spending, private inventory investment, and state and local government spending were partly offset by downward revisions to exports, fixed and federal government spending.

The Commerce Department said the slowdown in the pace of GDP growth in the third quarter came as consumer spending increased by a relatively modest 1.7 percent after soaring by 12.0 percent in the second quarter.

On the inflation front, the annual rate of growth in core consumer prices, which exclude food and energy prices, was unchanged from the initial estimate of 3.6 percent, which reflects the strongest price growth since 1991.