The US economy expanded at a faster pace in the third quarter than previously estimated, owing in part to stronger consumer spending and exports.
Gross domestic product increased at a 3.1% annualized rate in the third quarter, the third estimate of the figures from the Bureau of Economic Analysis showed Thursday. That compared to a previous projection of 2.8%. Consumer spending was marked up to a 3.7% pace — the fastest since early 2023 — boosted by stronger outlays on services.
Exports expanded by 9.6% in the July-to-September period, up from 7.5% in the prior estimate. That was also entirely due to services.
The numbers reinforce the notion that the economy is still powering ahead despite expectations among forecasters for an eventual slowdown. The report comes just a day after the Federal Reserve triggered a stock-market selloff by signalling a slower pace of interest-rate cuts in 2025, in part premised on recent stronger-than-expected economic data.
The report also showed one of the Fed’s preferred inflation metrics — the personal consumption expenditures price index, excluding food and energy — was marked up slightly to 2.2%. November PCE data is due Friday.
Other components that make up GDP like business and residential investment, as well as government spending, were also revised higher.
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Applications for US unemployment benefits fell last week after spiking earlier this month, continuing a streak of volatility that often occurs during the holiday season, separate data Thursday showed.
