GDP Growth Beats Forecast On Spending, Inventories
The U.S. economy expanded at a 3.5% pace in the third quarter as consumers opened their wallets, businesses restocked inventories and governments boosted spending, marking the strongest back-toback quarters of growth since 2014.
The annualized rate of gains in gross domestic product compared with the 3.3% median estimate in a Bloomberg survey and followed a 4.2% advance in the prior three months, according to Friday’s report from the Commerce Department.
Consumer spending, which accounts for about 70% of the economy, unexpectedly accelerated to a 4% increase — the best since 2014 — while the 0.8% gain in nonresidential business investment was the weakest in almost two years. In two volatile categories, inventories provided the biggest contribution since early 2015, while the drag from trade was the largest in 33 years. Government spending rose by the most since 2016.