Consumer-Spending Bump Offset By Inventories In Revised U.S. GDP

23 Dec    Investing News

Americans’ spending grew by more than previously reported in the third quarter, a change offset by a drag in inventories that left economic growth at a still-healthy but unrevised 2.1%.

Consumer outlays, which make up two-thirds of the economy, rose at a 3.2% annualized pace in the July-September period, up from a previously reported 2.9% gain, according to the Commerce Department’s third estimate of third-quarter gross domestic product released Friday.

The figures indicate spending was even more important than previously thought in helping the U.S. economy eke out a pickup from the second quarter’s 2% growth, as business investment fell by the most since 2015.