U.S. revises 3Q GDP to 2.8%
The U.S. Commerce Department on Tuesday revised downward its original estimate of third quarter Gross Domestic Product to 2.8 percent from 3.5 percent.
The new figure is based on more complete data that was not available when the preliminary estimate was made last month.
Exports were still a big contributor to the improvement from the second quarter, when productivity decreased 0.7 percent. Other economic drivers were private investment, personal consumption, federal stimulus spending and residential investment. Imports increased too, which is calculated as a drag on economic output.
Motor vehicle output added to the rebound, but much of that was stimulated by the 'Cash-for-Clunkers' program and it remains to be seen whether auto sales will continue to improve.
Exports increased 17 percent while imports rose 20.8 percent, compared to decreases of 4.1 percent and 14.7 percent, respectively, in the second quarter.