Third Quarter Economic Growth Revised to 1.8%

Washington, DC, Dec. 22, 2011 -- U.S. economic growth in the third quarter was revised down, the Commerce Department reported.

The U.S. economy grew at a 1.8% annual pace in the third quarter, compared with the 2.0% estimated expansion reported last month.

Third-quarter growth was originally estimated two months ago at a 2.5% annualized rate but was revised down to 2.0% growth in last month’s estimate. The revisions come from more complete data than were available at the time of the first and second estimates.

Economists had been expecting no revision in the third estimate.

Economists are forecasting stronger growth in the fourth quarter ending Dec. 31. Some estimates approach 4%.

The downward revision to gross domestic product in the third quarter was largely due to weaker consumer spending, offsetting upward revisions to business investment.

Corporate profits before tax increased $22.3 billion, or at 1.2% quarterly rate, in the third quarter.

Business fixed investments increased at a 15.7% annual pace, revised up from 14.8% earlier.