WASHINGTON—The Commerce Department has revised its latest, and last, estimate of economic growth during the third quarter from +4.6% to +5.0% on the strength of higher consumer spending, fixed investment and government spending data. Net imports declined.
Key to industry loan demand, real personal expenditures increased +3.2% in the third quarter, compared with an increase of +2.5% in the second, the Commerce Department said.
“While the numbers are encouraging, there is question whether recent growth rates can be sustainable through 2015,” the Commerce Department said in a statement. “On an annualized basis, economic growth in 2014 is running at a +2.5% pace, only +0.2% higher than the average growth rate over the past two years. Consumer spending continues to expand at a moderate +2.3% this year, about 0.01% below 2013 performance and only 0.02% higher than the previous two-year average.”
The Commerce Department said government spending increased measurably, and is up 1.8% this year after declining 1.4% in 2012 and 2% in 2012.
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