Washington, DC, December 21, 2005--Third quarter U.S. growth increased at a 4.1% rate, slightly lower than previous estimates of a 4.3% growth rate, the Commerce Department said Wednesday.
Despite the revision, growth in the third quarter remains the strongest since the first quarter of 2004.
The downward revision was unexpected. Economists had been forecasting third-quarter GDP to remain unrevised at a 4.3% rate.
Economic growth has averaged a 3.6% rate over the past four quarters. The economy expanded at a 3.3% rate in the second quarter.
As in the previous estimates of third quarter gross domestic product, the acceleration of growth in the third quarter was due to higher consumer and government spending.
In addition, spending on software and equipment was the strongest since the second quarter of 1962. Defense spending was the highest since the second quarter of 1987.
But the second revision found slightly less consumer spending than previously estimated.
Inflation measures were revised slightly higher; the core personal consumption expenditure price index increased at a revised 1.4% annual rate, up from the previous estimate of a 1.2% increase.
Corporate profits were revised lower to a decline of 4.0%, compared with the previous estimate of a 3.4% decline.
Final sales of domestic product increased 4.6%, down from 4.7% in the previous estimate.
