The U.S. economy expanded at a faster pace in the third quarter than initially estimated due to robust consumer spending and growing export volumes.
Revised data from the U.S. Bureau of Economic Analysis shows that America’s Gross Domestic Product (GDP) increased at a 3.1% annualized rate in Q3, higher than the original estimate of 2.8% growth.
Consumer spending was revised up to 3.7%, the fastest pace of growth in that economic sector since early 2023. At the same time, America’s exports grew faster than previously estimated.
The upward revision to GDP reinforces the view that the U.S. economy is strong and expanding. The report comes a day after the U.S. Federal Reserve lowered interest rates a further 25-basis points.
However, the U.S. central bank also lowered its outlook to just two additional rate cuts in 2025, saying stronger-than-expected economic data is likely to push it to the sidelines.
Other components that make up U.S. GDP, including business and residential investment and government spending, were also revised higher for the July through September quarter.
Applications for U.S. unemployment benefits fell last week after spiking earlier this month, continuing a streak of volatility that often occurs during the year-end holidays as seasonal workers are hired.
A separate report issued earlier this week showed existing home sales in the U.S. topped a rate of four million in November for the first time in six months as house hunters accept mortgage rates above 6%.
U.S. GDP data is frequently revised by the Bureau of Economic Analysis, especially data and indicators that are released on a quarterly basis.
