The U.S. economy grew at a healthier clip in the third quarter than initially thought, suggesting resilience that could help give the Federal Reserve confidence to raise interest rates next month.
The Commerce Department on Tuesday said the nation’s gross domestic product grew at a 2.1 percent annual pace, not the 1.5 percent rate it reported last month. It said efforts by businesses to reduce an inventory bloat had not been as aggressive as previously believed.
The growth estimate was also boosted by upward revisions to business spending on equipment and investment in home building. While consumer spending was revised down a bit, its pace remained brisk.
View Article