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US third-quarter GDP growth: The U.S. economy posted a sharp acceleration in the third quarter, surpassing market expectations as consumer demand remained strong, according to federal data released Tuesday.
Economic output, measured by gross domestic product, increased at a 4.3% annual rate between July and September.
The estimate was published by the Commerce Department as its first official reading of third-quarter growth.
The figure came in well above the 3.2% increase projected by economists surveyed by Dow Jones.
Household spending accelerated in the third quarter, climbing 3.5% after posting a 2.5% gain in the prior three-month period.
Economic momentum was reinforced by stronger export activity and higher government expenditures.
A smaller pullback in private fixed investment also helped support overall growth.
The data release had been slated for Oct. 30 but was pushed back as a result of the federal government shutdown.
This publication takes the place of a second estimate that was expected on Nov. 26.
The Bureau of Economic Analysis plans to issue a final assessment in a subsequent release.
An important gauge of underlying economic strength showed modest improvement in the third quarter, signaling sustained demand from U.S. households and businesses.
Real final sales to private domestic purchasers advanced at a 3% annual pace, slightly higher than the previous quarter’s reading.
Federal Reserve officials track the indicator closely to assess trends in consumer-driven growth.
The economy continued to expand during the period, even as price pressures remained a persistent concern.
Price pressures strengthened during the quarter, underscoring ongoing challenges for policymakers focused on inflation control.
The personal consumption expenditures price index, the Federal Reserve’s main inflation benchmark, advanced 2.8% over the period.
Core inflation, which excludes food and energy prices, rose 2.9%.
Both measures accelerated from earlier readings of 2.1% and 2.6% and continued to sit well above the Fed’s 2% objective.
The chain-weighted price index, which reflects shifts in consumer purchasing toward lower-priced goods, increased 3.8%.
That figure exceeded market expectations by a full percentage point.
The data offered a broadly favorable snapshot of the economy, but financial markets showed limited reaction as investors focused on more current indicators.
U.S. equity futures slipped modestly after the release.
Treasury yields stayed firm. The report also highlighted a surge in corporate earnings.
Business profits jumped by $166.1 billion, a 4.2% increase, following a much smaller $6.8 billion rise in the prior quarter.
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