US gross domestic product grew faster in the third quarter than first thought. The US Bureau of Economic Analysis now estimates the US economy grew at an annualized rate of 5.2%, up from an initial estimate of 4.9%. It’s also faster than the 2.1% growth in the second quarter.
The new estimate, which marks the second estimate of third-quarter growth, was released today.
Third-quarter growth was revised upward because of revisions to nonresidential fixed investment (spending on nonresidential structures as well as equipment and software) and state and local government spending that were partly offset by a downward revision to consumer spending. Imports, which are a subtraction in the GDP calculation, were also revised downward.
Today’s GDP estimate, along with recent inflation, may indicate the Fed has raised interest rates enough, according to reporting by Yahoo Finance.