US economy growth slows down in the third quarter
Published 22/11/2011 | 14:31
THE US economy grew at a slower pace than expected in the third quarter, according to official figures.
GDP grew at a 2pc annual rate in the three-month period, the US Commerce Department said in its second estimate.
This was down from the previously estimated 2.5pc.
The figures showed that consumer spending remained solid. Businesses inventories also dropped for the first time since the fourth quarter of 2009.
But data so far suggest the fourth-quarter growth pace could exceed 3pc,
This would be the fastest in 18 months.
Despite the downward revision, third quarter growth was still a step up from the April-June period's 1.3pc pace.
Washington revised third-quarter output to account for an $8.5bn drop in business inventories.
But this was offset by strong export growth.
Excluding inventories, the economy grew at an unrevised brisk 3.6pc pace after expanding 1.6pc in the second quarter.
Consumer spending was revised slightly down too - to a 2.3pc growth pace from 2.4pc because of adjustments to motor vehicle fuels and lubricants.
It was still the quickest pace since the fourth quarter of 2010.
Real disposable income fell 2.1pcin the third quarter, after declining 0.5pc in the previous three months.