WASHINGTON (Reuters) - U.S. economic growth picked up slightly in the third quarter, rather than slowing as initially reported, and there are signs the downturn in business investment could be drawing to a close.
The economy’s prospects were further brightened by other data on Wednesday showing consumer spending rising steadily and the number of Americans filing claims for unemployment benefits dropping last week after being stuck at a five-month high for two straight weeks.
The reports were released in the wake of data showing an acceleration in housing market activity early in the fourth quarter and a sharp decline in the goods trade deficit, as well as a solid pace of inventory accumulation by retailers.
The improvement in the economic data further diminished the risks of recession in the near term. Federal Reserve Chair Jerome Powell struck an optimistic note on the economy on Monday saying “at this point in the long expansion, I see the glass as much more than half full.”
The U.S. central bank last month cut interest rates for the third time this year and signaled a pause in the easing cycle that started in July when it reduced borrowing costs for the first time since 2008.
Gross domestic product increased at a 2.1% annualized rate, the Commerce Department said in its second estimate of third-quarter GDP. That was up from the 1.9% pace estimated last month. The economy grew at a 2.0% pace in the April-June period.
Economists polled by Reuters had forecast third-quarter GDP growth would be unrevised at 1.9%.
The upward revision to GDP reflected more inventory accumulation than initially thought, as well
