U.S. 3Q GDP Growth Unexpectedly Revised Lower

Politics Reuters

The U.S. economy grew at a slightly slower pace than previously estimated in the third quarter, but weak inventory accumulation amid sturdy consumer spending strengthened views output would pick up in the current quarter.

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Gross domestic product grew at a  much slower 0.5 percent rate rather than 1.9 percent.

Trade contributed almost half a percentage point to GDP growth. Elsewhere, residential construction grew at a 1.6 percent rate instead of 2.4 percent. Government spending fell at a 0.1 percent rate instead of being flat.

The GDP report also showed inflation pressures subsiding. A price index for personal spending rose at a 2.3 percent rate in the third quarter, instead of 2.4 percent.

That compared to a 3.3 percent rate in the second quarter.

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A core inflation measure, which strips out food and energy costs, rose at a 2.0 percent rate rather than 2.1 percent. The measure -- closely watched by the Federal Reserve -- grew at a 2.3 percent rate in the prior three months.

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