Washington, DC, December 22--Gross domestic product in the third quarter grew at an annual rate of 4%, which was revised up from an earlier estimated of 3.9%, according to a Commerce Department report issued Wednesday.
Economist had forecast GDP growth of 3.7%
GDP advanced 3.3% in the second quarter.
The Commerce Department said the upward revision reflected a downward revision to imports that was partly offset by a downward revision to state and local government spending.
After-tax corporate profits were revised to show a 4.2% decrease to $864.7 billion in the third quarter. Profits were earlier seen as dropping 2.0%. Profits dropped 0.7% in the second quarter. Year over year, third-quarter profits were up 5.7% from the same period 12 months earlier.
Inflation gauges were revised slightly higher. The price index for gross domestic purchases, rose at a 1.9% rate, raised from an earlier estimated 1.8%. The index advanced 3.5% in the second quarter.
The government's price index for personal consumption went up at a 1.3% rate; the previous estimate was an increase of 1.1%. The PCE index climbed 3.1% in the second quarter. The chain-weighted price index rose at a 1.4% rate, up from a previously estimated 1.3%. That gauge climbed 3.2% in the second quarter.
Consumer spending rose at an unrevised 5.1% annual rate in the third quarter. Spending grew 1.6% in the second quarter. Consumers' spending on durable goods jumped an unrevised 17.2%, after dipping 0.3% in the second quarter. Spending on non-durables rose 4.7%, revised down from a previously estimated 4.8% increase.
Business spending advanced 13.0%, revised up from a previously estimated 12.9% increase. Equipment and software spending climbed 17.5%. Outlays on structures went down 1.1%. Overall business spending rose 12.5% in the second quarter.
Residential investment rose 1.6% in the third quarter, after shooting up 16.5% the quarter before as the nation's housing sector showed strength.
