The US economy grew at a faster pace in the third quarter than it was initially expected, the Commerce Department said on Tuesday.
The report also showed the economy expanding at a strong 3.9 percent annual rate, better than the 3.5 percent annual rate reported in its first estimate in October.
The stronger consumer spending also played a crucial role in the upward revision of third-quarter growth, according to the Commerce Department.
The consumer spending rose 2.2 percent in the third quarter. It was better than the 1.8 percent rise in the first growth estimate. But economists said that the consumer spending growth in the third quarter was slow as it had increased 2.5 percent in the second quarter.
The growth pace in third-quarter was down from the 4.6 percent in the second quarter, but the analysts said that the drop was obvious as much of the spring activity came from poor demand after the economy contracted sharply during the winter which was marked by severe weather.
The federal government spending also played a major role in the reported growth in the third-quarter, rising 9.9 percent. Those expenditures declined by 0.9 percent in the second quarter.
