|
Post by bot on Nov 8, 2013 0:24:42 GMT -5
U.S. third-quarter GDP climbs up 2.8%
WASHINGTON (MarketWatch) - The U.S. expanded by a 2.8% annual pace in the third quarter, the biggest increase in a year and a half, aided by a large buildup in business inventories and an improved trade picture, the government said Thursday. Economists polled by MarketWatch had forecast 2.3% growth. Yet consumer spending, the main engine of the U.S. economy, slowed to a 1.5% increase from 1.8% in the second quarter, indicating the economy entered the fourth quarter with little momentum. Business investment also weakened, up just 1.6% vs. a 4.7% gain in the second quarter. And federal spending fell for the fourth straight quarter, down 1.7%. On the positive side, investment in the housing sector remained strong with a 14.6% increase and exports outpaced imports. Exports rose 4.6% vs. a preliminary 1.9% increase in imports. Business inventories, meanwhile, jumped by $86 billion in the third quarter, as companies restocked warehouse shelves at the fastest rate in six quarters. Such a large buildup, however, could be partly unwound in the final three months of 2013 and act as a drag on growth. Inflation as measured by the PCE index increased at a 1.9% annual rate and the core rate that excludes food and energy rose by 1.4%.
|
|