The US economy was stronger than previously thought in the third quarter

The US economy grew by 3.5% in the third quarter, stronger than previously reported, according to the Department of Commerce’s third estimate released on Thursday. It was the fastest pace in two years.

Economists had estimated that GDP was revised up a hair to 3.3% from a second reading of 3.2%, according to Bloomberg.

Personal spending was revised higher to 3% from 2.8%, reiterating that households continued to lift the economy while business investment was sluggish.

The drag from business spending was revised lower, however. Equipment expenditures fell at an annualized pace of 4.5%, improved from -4.8% previously reported.

The prior estimate of GDP showed a strong boost from exports. US soybean producers found a big gap to fill amid poor harvests in the largest South American exporting countries.

Core personal consumption expenditures (PCE), a measure of inflation that tracks prices paid and excludes volatile food and energy costs, was reported at 1.7% in the second estimate and unchanged in the third.

This is the final report on third-quarter GDP until annual revisions are published in 2017.

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