U.S. 3Q GDP Growth Falls Short of Estimates

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The US economy expanded at a 2.6 percent annual rate in the third quarter, slightly higher than than the previously reported 2.5 percent rate, the Commerce Department said Wednesday in its third and final estimate of gross domestic product [GDP].

Economists were predicting an upward revision to 2.9 percent.

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The main revisions were to consumer spending, which rose by less than previously estimated, and to company inventories, which increased by more than previously thought, according to Dow Jones Newswires.

Third-quarter business inventories increased by $121.4 billion, revised up from the $111.5 billion increase previously estimated and up from $68.8 billion in the second quarter.

The economy was boosted by exports in the third quarter, benefiting from a weaker dollar.

xports were up 6.8 percent, compared to a previous estimate of a 6.3 percent rise. Imports rose 16.8 percent, unchanged from the previous report.

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