Third-quarter growth revised up on spending

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Source: Reuters

(Reuters) - The U.S. economy grew faster than previously estimated in the third quarter, government data showed on Tuesday, but still not enough to address stubbornly high unemployment.

Gross domestic product growth was revised up to an annualized rate of 2.5 percent from 2.0 percent as exports, and consumer and government spending were stronger than initially thought, the Commerce Department said in its second estimate.

Economists had expected GDP growth, which measures total goods and services output within U.S. borders, to be revised up to a 2.4 percent pace. The economy expanded at a 1.7 percent rate in the second quarter.

"It wasn't inventories, which is good news," said Nigel Gault, chief U.S. economist at IHS Global Insight in Lexington, Massachusetts. "You had positive surprises in spending to outweigh inventories. Hopefully we can carry that momentum into the fourth quarter. It's good news."




Read more: http://www.reuters.com/article/idUSTRE6AM32Y20101123