GDP rises in line with estimates

The US economy grew 2.1% in the third quarter, in line with economists’ expectations, according to a second estimate of Gross Domestic Product (GDP).

This revision, based on more complete data received by the Department of Commerce, was an improvement from the advance estimate of 1.5%.

Increases in personal consumption, nonresidential fixed investment, and government spending boosted growth during the quarter.

But bloated inventories are still a problem. Inventories rose $100.6 billion, with the drop (0.59%) during Q3 smaller than previously estimated (1.44%).

Personal consumption rose 3%, lower than the expectation for 3.2%. And, corporate profits fell 4.7%, the biggest decline since 2009.

Core personal consumption expenditures, a measure of inflation, rose 1.3%, in line with estimates.

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