(MENAFN- The Peninsula) A smaller trade deficit and a surge in defence spending buoyed US economic growth in the third quarter, but other details of yesterday's report hinted at some loss of momentum in activity.
Gross domestic product grew at a 3.5 percent annual rate, the Commerce Department said, beating economists' expectations for a 3.0 percent pace. Despite decelerating from the second quarter's brisk 4.6 percent pace, it was the fourth quarter out of five that the economy has expanded at or above a 3.5 percent clip.
A separate report from the Labour Department showed first-time applications for unemployment benefits rose modestly last week, but remained at levels consistent with firming labour market conditions.
Government spending was also a boost, with defence spending rising at a 16 percent rate.
Growth in business investment slowed in the third quarter, with spending on equipment rising at only a 7.2 percent rate. While growth in consumer spending decelerated to a 1.8 percent pace from the second-quarter's 2.5 percent pace, it still contributed 1.22 percentage points to GDP growth.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.