3rd-Quarter U.S. GDP Soars
The nation’s gross domestic product increased at an annual rate of 4.1 percent during the third quarter, solidly beating analysts’ expectations, the federal government said today.
The latest estimate from the U.S. Commerce Department exceeded by 0.5 percent the most recent estimate for the quarter, which was released Dec. 5. But the government said the latest estimate is based on more complete source data.
Analysts polled for Yahoo Finance expected a jump of 3.7 percent.
The increase primarily reflected gains in private inventory investment, nonresidential fixed investment, exports, residential fixed investment, and state and local government spending, the Commerce Department said. Those gains were partly offset by a gain in imports and a drop in federal government spending.
Consumers also helped, spending 2 percent more during the third quarter, up from 1.8 percent in the second quarter. Purchases of durable goods increased 7.9 percent, up from a 6.2-percent jump in the second quarter. And spending of non-durable goods increased 2.9 percent, compared with 1.6 percent.
The stock market reacted positively to the news in early trading. The Dow Jones Industrial Average rose nearly half of 1 percent in the first 75 minutes of trading, building on a gain of 2.5 percent over the first four trading days of the week.
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