Dec. 19 - Third-quarter growth is upwardly revised to 3.1% as government spending and exports provided a lift. Conway G. Gittens reports.
The Daily Digit today is 3.1%. The U.S. economy grew at an annual rate of 3.1% from late summer to early fall, according to the final reading of third-quarter gross domestic product. It is much faster than anyone expected. And the reason is that people simply spent more money than initially thought. Plus, state and local government expenditures added to growth for the first time in nearly three years. Also, exports looked better, helping to narrow the trade deficit. But imports dropped for the first time in more than three years, which is a sign of weak domestic demand. Slowing global activity and a move towards tighter fiscal policy will most likely bury the boost in economic growth in the current quarter.