US revises third quarter growth down to 4.9%
Economic growth in the United States was slower than anticipated in the July to September period, government data showed on Thursday, with consumer spending turning out weaker than expected. The world's largest economy grew 4.9 percent in the third quarter, said the Commerce Department. This was a downward revision from an estimate released last month, which pegged growth at 5.2 percent. "The update primarily reflected a downward revision to consumer spending," said the Commerce Department. But the economy remained boosted overall by factors like consumption, private inventory investment, exports and government spending, the department added. Resilient spending, supported by a strong job market, has helped the US economy avert a recession – despite predictions of a downturn as the Federal Reserve rapidly hiked interest rates to fight inflation. "More than the third quarter data, the trend in growth going forward, particularly in consumption, will be important," said High Frequency Economics chief US economist Rubeela Farooqi in a note. She expects growth to "slow substantially" as the effects of Fed rate increases ripple through the economy, dampening household spending and weighing on GDP. (AFP)