Revised GDP report reveals slower growth

Washington, DC, United States (AHN) – The economy grew at a slower pace from July through September than originally thought, according to revised figures released by the Commerce Department on Tuesday.

Gross domestic product grew only at a 2 percent annual rate during the third quarter down from the 2.5 percent originally reported last month.

GDP is the measure of the sales of all goods and services produced in the United States. The government generally revises its estimate of the GDP figure twice and this is the first revision.

The 2 percent growth is still an increase from the second quarter growth of only 1.3 percent.

Third quarter consumer spending was also revised downward to 2.3 percent from 2.4 percent. Nevertheless, that was still higher than the 0.7 percent recorded during the previous quarter.

Moreover, export growth was better than previously estimated, rising by 4.3 percent instead of the previous estimate of 4 percent. In addition, exports grew at a slower rate of 0.5 percent instead of the first estimate of 1.9 percent.

Disposable income is still declining. It fell 2.1 percent in the third quarter compared to a drop of 0.5 percent in the second quarter.

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