The Commerce Department released a report on Wednesday that showed the U.S. economy
expanded at an even faster rate than previously suggested in the third quarter
This was due to more government expenditure and better-than-expected corporate investment.
According to the department's second estimate, the gross domestic product—a measure of all goods & services
generated during the three-month period—accelerated at a 5.2% annualized pace.
The acceleration exceeded the first 4.9% estimate and the 5% prediction of Dow Jones' panel of economists.
Increases in nonresidential fixed investment, which includes buildings, machinery,
and intellectual property, were the main cause of the upward revision.
Even though the category had a 1.3% increase, it still represented a significant decline from prior quarters.
The Q3 estimate was further enhanced by government expenditure, which increased 5.5% from July
However, consumer spending saw a downward revision, now rising just 3.6%, c
There was some mixed news on the inflation front. The personal consumption expenditures