The figure was derived from the department’s Bureau of Economic Analysis, with National Association of Federally-Insured Credit Union (NAFCU) personnel attributing the positive revision to higher estimates for business investment, government spending, and inventory accumulation.
“Consumer spending continues to propel the economy as the labor market tightens,” Curt Long, NAFCU vice president of Research and chief economist, said. “The only sizable drag came from residential investment as housing starts slowed during the quarter. Looking ahead, weather-related replacement purchases and rebuilding activities are expected to boost economic growth over the remainder of the year.”
The Bureau of Economic Analysis estimate referenced personal consumption expenditure (PCE) inflation, the Federal Reserve’s preferred inflation metric, remained at 1.5 percent in the third quarter’s second estimate, up from 0.3 in the second quarter. Officials said core PCE inflation (excluding food and energy) increased from 0.9 percent to an upwardly-revised 1.4 percent. The gross domestic product (GDP) grew 3.1 percent in the second quarter.
Economic growth occurred despite concerns about the possible negative impact of recent hurricanes.