Washington, DC (CNN) — US economic growth was slightly lower in the third quarter than previously reported, but still robust, underscoring the sheer strength of America’s economy during the summer.
Gross domestic product, the broadest measure of economic output, expanded at an annualized 4.9% rate from July through September, the Commerce Department reported Thursday. That’s a slower pace of growth than the 5.2% reported in the second estimate.
Growth in the third quarter was the strongest in nearly two years as Americans spent on live concerts, films, and goods. The US economy has slowed from the red-hot pace set earlier in the year, but both hiring and spending remain solid.
The department’s final estimate factored in weaker consumer spending, inventory investment and exports, while revising government outlays and business investment higher. Consumer spending, which accounts for about two-thirds of economic output, was revised down to 3.1% from 3.6%.
Investors are bullish that Federal Reserve is poised to cut interest rates in just a few months, though officials have recently pushed back on that optimism. Some also believe the economy is in the midst of sticking a soft landing, a scenario in which inflation returns to the Fed’s 2% target without a sharp rise in unemployment.
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