US GDP revised down to 4.1% growth
Wed Dec 21,11:30 AM ET
WASHINGTON (AFP) - The US economy expanded at a 4.1 percent annual pace in the third quarter, the government said, in its final estimate of gross domestic product (GDP) for the July-September period.
The Commerce Department figure came down a notch from last month's estimate of 4.3 percent growth. The first estimate was 3.8 percent.
The lower GDP was primarily the result of a downward adjustment to estimates of consumer spending.
Inflation measures were revised slightly higher; the core personal consumption expenditure price index increased at a revised 1.4 percent annual rate, up from the previous estimate of a 1.2 percent increase.
Robert Brusca at FAO Economics said the latest revision "is still a very good report."
He said inflation appears in check but that "pressure on income is an issue and the low savings rate at minus 1.8 percent is a real problem for the consumer going forward."
Economic growth has averaged a 3.6 percent rate over the past four quarters.
The third quarter showed an acceleration of the expansion from 3.3 percent in the second quarter, as the economy weathered the impact of Hurricane Katrina and surging oil prices.
Many economists are predicting a cooling of growth in the fourth quarter, from delayed impacts of Katrina and high energy costs.
GDP amounted to 12.606 trillion dollars on an annualized basis.
Copyright © 2005 Agence France Presse
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