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The U.S. economy grew at a much greater-than-expected pace in the third quarter, boosted by strong consumer spending, a delayed report released Tuesday showed. <\/p>\n
U.S. gross domestic product, a sum of all goods and services produced in the sprawling U.S. economy, expanded by 4.3% in the July-September period, the Commerce Department said in its initial reading of third-quarter growth. Economists polled by Dow Jones expect a gain of 3.2%.<\/p>\n
Consumer spending expanded by 3.5% in the third quarter after rising 2.5% in the second quarter. <\/p>\n
Increases in exports and government spending also boosted growth, while a smaller dip in private fixed investment helped as well.<\/p>\n
The report originally had been scheduled for release on Oct. 30 but was delayed by the government shutdown. This release also replaces a second estimate that was set to drop on Nov. 26. The department’s Bureau of Economic Analysis will release one final estimate later.<\/p>\n
A measure of growth called real final sales to private domestic purchasers rose 3% in the quarter, up 0.1 percentage point from the prior period. Federal Reserve policymakers watch the data point closely for signs of consumer demand.<\/p>\n
The economy moved forward during the period despite persistent signs of inflation pressures.<\/p>\n
The personal consumption expenditures price index, the Fed’s primary inflation gauge, rose 2.8% during the period, and 2.9% for core which excludes food and energy. Both were above prior respective readings of 2.1% and 2.6% and remain well above the Fed’s 2% inflation gauge. Also, the chain-weighted price index, which accounts for changes in consumer behavior such as switching to less expensive products for pricier items, rose 3.8%, a full percentage point above the forecast.<\/p>\n
Though the report presented a largely positive view of the economy, markets reacted little as the data is backward-looking. Stock futures were slightly negative while Treasury yields held higher.<\/p>\n
Elsewhere in the report, corporate profits soared by $166.1 billion, or 4.2%, compared with a gain of $6.8 billion in the second quarter. <\/p>\n","protected":false},"excerpt":{"rendered":"The U.S. economy grew at a much greater-than-expected pace in the third quarter, boosted by strong consumer spending,…\n","protected":false},"author":2,"featured_media":365708,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[449,116,28,122,101],"class_list":["post-365707","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-breaking-news-economy","tag-breaking-news-markets","tag-business","tag-business-news","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/365707","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=365707"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/365707\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/365708"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=365707"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=365707"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=365707"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}