WASHINGTON: U.S. economic growth picked up slightly in the third quarter, rather than slowing as initially reported, and there are signs the downturn in business investment could be drawing to a close.
Gross domestic product increased at a 2.1per cent annualized rate, the Commerce Department said in its second estimate of third-quarter GDP. That was up from the 1.9per cent pace estimated last month. The economy grew at a 2.0per cent pace in the April-June period. Second-quarter GDI growth was revised down by 0.9 percentage point, with growth in wages and sales during that period slashed by US$46.7 billion to US$62.1 billion.
U.S. stock index futures briefly extended gains and U.S. 10-year Treasury yields rose after the release of the data. The dollar strengthened against a basket of currencies.Growth has slowed from the 3.1per cent rate notched in the first three months of the year. The slowdown is largely blamed on the Trump administration's trade war with China, which has eroded business confidence, contributing to the second straight quarterly decline in business investment.
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