English
The US economy grew at a much faster pace than expected in the third quarter
fueled by strong consumer spending, according to a report released Tuesday.
The preliminary reading of third-quarter gross domestic product growth from the US Commerce Department showed the economy expanded at a rate of 4.3% from July to September, compared with economists' expectations of 3.2%, according to a Dow Jones survey.
Increases in exports and government spending contributed to the growth, along with a slight decline in private fixed investment.
The report was originally scheduled for release on October 30 but was delayed due to the government shutdown. This report replaces the second estimate that was due on November 26. The Bureau of Economic Analysis will release a final estimate later.
The real final sales index for private domestic buyers rose 3% in the quarter, up 0.1 percentage point from the previous period. This index is closely watched by Federal Reserve policymakers for clues about the strength of consumer demand.
The economy continued to improve during this period despite persistent signs of inflationary pressures. The personal consumption expenditures (PCE) price index, the Fed's main inflation gauge, rose 2.8%, and the core PCE index, which excludes food and energy, rose 2.9%, compared to previous readings of 2.1% and 2.6%, respectively, and both remain well above the Fed's 2% target.
While the report presented a largely positive picture of the economy, market reactions were muted given the historical nature of the data. Stock futures dipped slightly, while Treasury yields remained elevated.
