Economists polled by Reuters had forecast GDP growth at a rate of 2.7%.
The upward revision was due to improvements in consumer and business spending growthas well as less importswhich compensated for the ballast of a slower pace of inventory accumulation.
When measured from the income side, the economy grew at a rate of 0.3%. The Gross Domestic Income (IIB) had contracted at a rate of 0.8% in the second trimester. In principle, GDP and IIB should be the same, but in practice they diverge, since they are estimated using different and largely independent sources.
The average of the GDP and the IIB, also referred to as Gross Domestic Production and considered a better measure of economic activity, increased at a rate of 1.6% in the July-September period after contracting at a rate of 0.7% in the second trimester.
Profits from current production declined at a rate of US$31.6 billion in the third quarter after increasing at a rate of US$131.6 billion in the second trimester.
With the Federal Reserve embarking on what became the fastest rate-raising cycle since the 1980s, the economy is in danger of slipping into recession as early as the first half of next year.
Economists, however, believe that any recession will be brief and mild due to unprecedented strength in the labor market.
The real estate market is crashingwith residential investment contracting for six consecutive quarters, the longest period since the housing market collapse in 2006. In addition, consumer and business confidence is in slopewhich could hurt spending and undermine job growth.
Source: Ambito
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