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U.S. economy grows 3 percent in Q3

Staff Writer |
The U.S. economy unexpectedly maintained a brisk pace of growth in the third quarter.

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Gross domestic product increased at a 3.0 percent annual rate in the July-September period after expanding at a 3.1 percent pace in the second quarter, the Commerce Department said.

The department said while it was impossible to estimate the overall impact of hurricanes Harvey and Irma on third-quarter GDP, preliminary estimates showed that the back-to-back storms had caused losses of $121 billion in privately owned fixed assets and $10.4 billion in government-owned fixed assets.

Businesses accumulated inventories at a $35.8 billion pace in the third quarter in anticipation of strong demand.

As a result, inventory investment contributed 0.73 percentage point to third-quarter GDP growth, after adding just over a tenth of a percentage point to growth in the prior period.

Exports increased at a 2.3 percent rate in the third quarter, while imports fell at a 0.8 percent pace.

That left a smaller trade deficit, leading to trade adding 0.41 percentage point to GDP growth. Trade has contributed to output for three quarters in a row.


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