21.12.202313:49:00UTC+00U.S. Economy Grows Less Than Previously Estimated In Q3

The U.S. economy unexpectedly grew by less than previously estimated in the third quarter of 2023, the Commerce Department revealed in a report released on Thursday.

The report said real gross domestic product jumped by 4.9 percent in the third quarter, reflecting a downward revision from the previously reported 5.2 percent surge. Economists had expected the pace of GDP growth to be unrevised.

The Commerce Department said the slower than previously estimated GDP growth primarily reflected a downward revision to consumer spending.

Despite the downward revision, the pace of GDP growth in the third quarter still reflects a substantial acceleration compared to the 2.1 percent increase in the second quarter.

The faster growth primarily reflected an upturn in exports and accelerations in consumer spending and private inventory investment that were partly offset by a deceleration in nonresidential fixed investment.

The report also showed downward revisions to the pace of price growth in the third quarter, which may add to recent optimism about the outlook for interest rates.

The Commerce Department said the surge in consumer prices in the third quarter was downwardly revised to 2.6 percent from 2.8 percent.

The increase in core consumer prices, which exclude food and energy prices, was also downwardly revised to 2.0 percent from 2.3 percent.