WASHINGTON—The U.S. economy grew an estimated 3.3% in the third quarter, the Commerce Department said in its second estimate.
This marks the strongest growth in three years pointed out NAFCU Vice President of Research and Chief Economist Curt Long.
The department's Bureau of Economic Analysis released the second estimate this week, which revised the economy's growth to 3.3% from its initial estimate of 3%.
Long, in a Macro Data Flash report, attributed the positive revision to higher estimates for business investment, government spending and inventory accumulation. However, those were partially offset by slightly lower consumer spending estimate.
"Consumer spending continues to propel the economy as the labor market tightens," Long said. "The only sizable drag came from residential investment as housing starts slowed during the quarter.
"Looking ahead, weather-related replacement purchases and rebuilding activities are expected to boost economic growth over the remainder of the year," Long continued.
Personal consumption expenditure (PCE) inflation, the Fed’s preferred inflation metric, remained at 1.5% in the third quarter's second estimate, up from 0.3 in the second quarter. Meanwhile, core PCE inflation (excluding food and energy) increased from 0.9% to an upwardly-revised 1.4%, Long said.
GDP grew 3.1% in the second quarter.