WASHINGTON, Dec. 19 (Xinhua) -- U.S. gross domestic product in the third quarter was revised upward to an annual rate of 3.1 percent, the U.S. Commerce Department reported in the third and final estimate released Thursday.
In the first and second estimates, the increase in real GDP was 2.8 percent, according to the department's Bureau of Economic Analysis.
The update primarily reflected upward revisions to exports and consumer spending that were partly offset by a downward revision to private inventory investment. Imports, which subtract from GDP, were also revised higher.
The report showed that the increase in real GDP in the third quarter primarily reflected increases in consumer spending, exports, nonresidential fixed investment, and federal government spending. The latest data marked a slight acceleration compared to the second quarter when real GDP increased by 3.0 percent.
Compared to the second quarter, the acceleration in real GDP in the third quarter primarily reflected accelerations in exports, consumer spending, and federal government spending, although these gains were partly offset by a downturn in private inventory investment and a larger decrease in residential fixed investment. Imports also saw an uptick.
Disposable personal income increased 141.5 billion dollars, or 2.7 percent, in the third quarter, an upward revision of 18.6 billion dollars from the previous estimate. Real disposable personal income increased 1.1 percent, an upward revision of 0.3 percentage points.
On Wednesday, the U.S. Federal Reserve slashed interest rates by 25 basis points, the third consecutive rate cut in this easing cycle.
The Fed's latest economic projections indicated fewer cuts next year, with a median forecast of two 25-basis-point cuts in 2025.
The median forecast showed that Fed officials expect the U.S. economy to grow by 2.5 percent in 2024 and 2.1 percent in 2025, respectively. ■