U.S. economy grows 3.9% in Q3

November 26, 2014 7:03 am 

WASHINGTON, Nov. 26 — U.S. real gross domestic (GDP) increased at an annual rate of 3.9 percent in the third quarter this year, higher than the initial estimate of 3.5 percent, according to the second estimate released by the U.S. Commerce Department on Tuesday.

Personal consumption, which accounts for about 70 percent of the U.S. economy, grew 2.2 percent, compared with an increase of 2. 5 percent in the second quarter. Exports increased 4.9 percent, slower than an increase of 11.1 percent in the previous quarter.

Nonresidential fixed investment increased 7.1 percent, down from 9.7 percent in the second quarter. Residential fixed investment increased 2.7 percent, down from 8.8 percent in the previous quarter.

The U.S. GDP grew at an annual pace of 4.6 percent in the second quarter.

The Federal Reserve concluded its quantitative easing stimulus at the end of last month amid improving economic outlook. Supported by the accommodative monetary policy and further easing of restraint on spending from changes in fiscal policy, the Fed expected the GDP to rise faster than potential output in 2015 and 2016.

The final estimate of the third quarter GDP will be released on Dec. 23. (PNA/Xinhua)

FPV/JSD

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