US economy growing faster than expected at 3.1%
The US economy grew at a faster clip than expected of 3.1 per cent in the third quarter, according to the latest revision by the commerce department, putting it in a stronger position to withstand any shock from the looming fiscal cliff.
The figure was higher than the 2.7 per cent annualised growth previously estimated for the third quarter, and far more than the 1 per cent growth rate that was originally calculated by the commerce department two months ago.
The upward revision followed higher net exports, as well as support from spending.
Economists welcomed the data – which showed the US economy growing at its fastest since late 2011 – but cautioned it was unlikely to last long. “This revision was a healthy one, driven by final sales, not inventories,” said Nigel Gault at IHS Global Insight. – Copyright The Financial Times Limited