U.S. 3Q GDP Growth Unexpectedly Revised Lower

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.

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.

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.