The US economy grew more healthily than expected in the third quarter – further fuelling expectations that the Federal Reserve may see enough confidence to raise interest rates next month.
The figures from the US Commerce Department show that Gross Domestic Product grew at over two percent at an annual pace, well above the 1.5 percent estimated last month.
The upward revision is attributed partly to smaller-than-anticipated efforts by businesses to reduce their inventories – and more spending on equipment and home building.
The Fed is expected to raise rates at its mid-December policy meeting. Although consumer spending was revised downwards slightly, domestic demand and job growth are strong.
The GDP revision was in line with economists’ expectations – and the expansion should enable the economy to achieve at least two percent growth in the second half of the year.