ISSN 2330-717X

US Economy Grew Less Than Expected In Third Quarter

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The US economy grew at a slower pace than expected in the third quarter, official data showed Tuesday.

The Department of Commerce indicated in a report that real gross domestic product (GDP) increased at an annual rate of 2.0 percent in the third quarter of 2011 down from a 2.5 percent prior estimate.

In the second quarter, real GDP increased 1.3 percent.

The report noted that the increase in real GDP in the third quarter primarily reflected positive contributions from personal consumption expenditures (PCE), nonresidential fixed investment, exports, and federal government spending that were partly offset by negative contributions from private inventory investment and state and local government spending.

Also, imports, which are a subtraction in the calculation of GDP, increased.

The report showed that final sales of computers added 0.22 percentage point to the third-quarter change in real GDP after adding 0.07 percentage point to the second-quarter change.

Motor vehicle output added 0.18 percentage point to the third-quarter change in real GDP after subtracting 0.10 percentage point from the second-quarter change.

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KUNA

KUNA is the Kuwait News Agency

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