This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

U.S. Economy Grows 2.6% in Third Quarter

NEW YORK ( TheStreet) -- The U.S. economy grew at a slightly faster pace than previously estimated during the third quarter, as companies boosted inventories and imports slowed.

According to the Bureau of Economic Analysis' final estimate, seasonally adjusted real gross domestic product rose 2.6%, slightly higher than its previous estimate of 2.5%. Economists were expecting a higher revision to 2.7%, according to consensus estimates from

The U.S. economy expanded 3.7% in the first quarter, then sharply decelerated during the second, growing at a pace of 1.7%. That sparked fears of a double-dip recession. The acceleration of growth in the third quarter has helped abate those concerns.

Revisions in the final estimate included a faster than expected rise in business inventories. Private businesses increased inventories $121.4 billion in the third quarter, following increases of $68.8 billion in the second quarter and $44.1 billion in the first.

Real final sales of domestic product, which excludes the impact of a build-up in inventories, increased 0.9% in the third quarter, the same increase as in the second.

Consumer spending, which accounts for 70% of GDP, rose 2.4%, less than previously estimated 2.6%.

Exports jumped 6.8% in the third quarter, after rising 9.8% in the previous quarter, helped by a weaker dollar.

Inflation levels captured by the GDP report remained subdued. The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 0.7% in the third quarter, 0.1 percentage point less than the second estimate. The index increased 0.1% in the second quarter.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SPY $208.81 -0.78%
DIA $179.59 -0.87%
AAPL $128.13 1.40%
FB $80.73 -0.59%
GOOG $573.69 -0.29%


DOW 17,968.49 -167.23 -0.92%
S&P 500 2,089.56 -11.48 -0.55%
NASDAQ 4,971.4740 -11.3350 -0.23%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs