Finance

GDP expanded at 2.1 percent rate in 3rd quarter, faster than previously estimated

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The economy grew at a 2.1 percent annual pace in the third quarter, up from the 1.9 percent rate previously reported by the Commerce Department.

“The increase in real GDP [gross domestic product] in the third quarter reflected positive contributions from PCE, federal government spending, residential investment, private inventory investment, exports, and state and local government spending that were partly offset by a negative contribution from nonresidential fixed investment,” the Commerce Department said Wednesday.

The figure is well below the 3 percent annual growth rate the Trump administration promised its policies would produce regularly, but has yet to achieve.

Corporate profits were also down significantly, falling to $4.6 billion from $75.8 billion in the previous three months.

The overall revision comes amid a flurry of improving economic data, including soaring stock prices, strong consumer sentiment and continued low levels of unemployment, all of which could put the wind in President Trump’s sails as he seeks reelection.

Tags 2020 election Commerce Department Donald Trump economy GDP
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