US economy grew faster in Q3 of last year than first reported

Powered by strong consumer spending, the U.S. economy grew at the fastest pace in two years from July through September, the government said Thursday in a slight upgrade of its first estimate.

America’s gross domestic product—the nation’s output of goods and services—rose at a 4.4% annual pace in the third quarter, the Commerce Department reported Thursday, up from 3.8% in the April-June quarter and from the 4.3% growth the department initially estimated. 

Consumer spending, which accounts for 70% of U.S. GDP, grew at a healthy 3.5% pace. Spending on services such as health care rose 3.6% versus a 3% uptick on goods spending, including an increase of just 1.6% on so-called durable goods, which are meant to last at least three years. A surge in exports and a drop in imports also contributed to robust third-quarter growth.

Business investment (excluding homebuilding) rose at a 3.2% clip, partly reflecting bets on artificial intelligence.

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