Third-Quarter GDP Growth Revised Upward to 2.7%
America's third quarter Gross Domestic Product (GDP) increased at a 2.7% annual rate, which was revised from an initial 2% growth estimate. In the second quarter, the economy grew at a 1.3% annual rate.
According to the Bureau of Economic Analysis, the U.S. economy grew due to investment in inventory, spending by the federal government and personal consumption, although the 1.4% increase in personal consumption in the third quarter was 0.1% less than the 1.5% increase in the second quarter.
The report also found that corporate profits increased $67.3 billion in the third quarter, compared with an increase of $21.8 billion in the second quarter.
Investment in equipment and software, though, decreased by 2.7% in the third quarter. Analysts believe this, along with the fact that businesses may not need as much inventory, may be a sign of trouble ahead for the economy, especially since the rate of personal consumption did not increase by as much as it had in previous quarters.
In addition, according to the Department of Labor, 393,000 Americans filed for unemployment benefits for first time in the week ending November 24, which was a "decrease of 23,000 from the previous week's revised figure of 416,000." The 4-week moving unemployment average, though, was 405,250, which represents an increase of 7,500 from the previous week's average of 397,750.