WASHINGTON: The U.S. economy grew 2.1 percent in the third quarter, according to the second estimate data released by the Commerce Department Tuesday.
It was well over the advance estimate of 1.5 percent in economic growth for the same period.
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The increase in real gross domestic product (GDP) in the third quarter primarily reflected positive contributions from personal consumption expenditures, nonresidential fixed investment, state and local government spending, residential fixed investment and exports, the department said.
Consumer spending, which accounts for about 70 percent of the U.S. economy, rose 3 percent, compared with the 3.6-percent growth in the second quarter.
Exports increased 0.9 percent, higher than a growth of 5.1 percent in the second quarter. Fixed investment was up 3.4 percent, compared with an increase of 5.2 percent in the second quarter.
Although the economy posted slower expansion, analysts said it is a reasonable slowdown from a brisk growth of 3.9 percent in the second quarter, and the U.S. economy is well track.
According to the minutes of the Fed’s Oct. 27-28 meeting released last Wednesday, most Fed officials believed the conditions for beginning raising the interest rates would be met in December.
In a congressional testimony on Nov. 4, Federal Reserve Chair Janet Yellen said December would be a “live possibility” for a rate hike if the upcoming data were supportive.
The Commerce Department will release the final estimate of the third quarter GDP on Dec. 22.
