(Dec 19): The US economy expanded at a faster pace in the third quarter than previously estimated, owing in part to stronger consumer spending and exports.

Gross domestic product increased at a 3.1% annualised rate in the third quarter, the third estimate of the figures from the Bureau of Economic Analysis showed Thursday. That compared to a previous projection of 2.8%. Consumer spending was marked up to a 3.7% pace from 3.5%.

Exports expanded by 9.6% in the July-to-September period, up from 7.5% in the prior estimate. That was entirely due to services.

The numbers reinforce the notion that the economy is still powering ahead despite expectations among forecasters for an eventual slowdown. The report comes just a day after the Federal Reserve triggered a stock-market sell-off by signalling a slower pace of interest-rate cuts in 2025, in part premised on recent stronger-than-expected economic data.

The report also showed one of the Fed’s preferred inflation metrics — the personal consumption expenditures price index, excluding food and energy — was marked up slightly to 2.2%. November PCE data is due Friday.

Other components that make up GDP like business and residential investment, as well as government spending, were revised higher.

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