US economy grows faster than expected in third quarter

From BBC - October 27, 2017

The US economy expanded at an annual pace of 3% during the three months to the end of September, which was stronger than expected.

The growth extended the robust activity reported in the previous quarter, when US GDP grew at an annual pace of 3.1%.

Analysts had been expecting a sharp slowdown after back-to-back hurricanes battered several states in the quarter.

But consumer spending held steady, despite a drop in homebuilding investment.

Together the two quarters mark the strongest six months of economic activity for the US since 2014, the Commerce Department said.

"Overall, this is a very solid performance, given the disruption caused by Hurricanes Harvey and Irma," wrote Ian Shepherdson of Pantheon Macroeconomics.

"Their net effect seems to have been smaller and shorter than we expected."

Consumer spending, which increased at a 3.3% rate in the second quarter, slowed to 2.4% growth - which was probably caused by the hurricanes.

Construction spending fell, but exports and business investments in equipment and intellectual property accelerated from the previous quarter, contributing significantly to the GDP rise.


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