In a sign that the economy may be picking up, the gross domestic product increased at an annual rate of 2.8% in the third quarter, according to a second estimate released today by the Commerce Department.
That's an improvement over the second quarter, when it declined 0.7% but a slight decline from the department's initial estimate of third quarter growth, which was 3.5%.
From July through September, real gross domestic purchases-purchases by Americans of goods and services wherever they were produced-increased 3.5% (the department had originally estimated 4%), following a 2.3% decline in the second quarter.
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The department cited a rise in personal, business and government spending and exports as the reasons for the improvement.
Exports increased 17%, an increase from the preliminary estimate of 14.7%. There was a 4.1% drop in the second quarter.
Imports rose 20.8%, an increase from the preliminary estimate of 16.4%. In the second quarter, imports dropped 14.7%.
Consumers paid more for some products. The price index for gross domestic purchases increased 1.4%, compared with the initial estimate of 1.6%. During the second quarter, the index increased 0.5%.
Personal consumption expenditures increased 2.9%, compared to the preliminary estimate of 3.4%. During the second quarter, expenditures declined 0.9%.
Residential fixed investment, which includes housing, increased 19.5%, following a 23.4% in decline in the second quarter.
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