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U.S. Q3 economic growth raised to 3.5 percent

Staff Writer |
U.S. GDP increased at a 3.5 percent annual rate instead of the previously reported 3.2 percent pace, the Commerce Department said in its third GDP estimate.

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Growth was the strongest since the third quarter of 2014 and followed the second quarter's anemic 1.4 percent pace.

Output was also lifted by upward revisions to business investment in structures and intellectual property products, underscoring the economy's solid fundamentals, which contributed to the Federal Reserve raising interest rates last week.

When measured from the income side, the economy grew at a 4.8 percent pace, instead of the previously reported 5.2 percent

clip. That was the fastest pace of increase in gross domestic income since the second quarter of 2014 and followed a 0.7 percent rate of increase in the second quarter.

Consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased at a 3.0 percent rate in the third quarter and not the 2.8 percent pace reported last month.

That was still a slowdown from the second quarter's robust 4.3 percent pace.

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