The US economy grew 3.5% in third quarter this year, resulting in corporate profits increase, reported MarketWatch. In fact, a poll by MarketWatch “had forecast third-quarter GDP to be revised up to 3.6% annual rate.”
According to the “second” estimate released by Bureau of Economic Analysis, the actual Gross Domestic Product rose 3.5% in the third quarter. It seems the growth rate was unchanged from the “advance” estimate released in October. However, the GDP in second quarter was 4.2%.
Understanding the GDP rate, there was a significant impact on some segments. For example: consumer spend rose 3.6% instead of 4%, which reflects on Americans’ reduced spend on new vehicles. Likewise, the state and local government spend was lowered to 2% from 3.2%.
However, the production of unsold goods saw an increase: they grew to $86.6bn annual rate from an initial $76.3bn.