Details from Friday’s report suggested underlying health and point to momentum heading into 2018.
Consumer spending, the biggest source of economic demand in the U.S., increased at a 2.4% rate in the quarter, below the trend of recent years. Spending was likely suppressed by the storms.
Businesses continued to step up investment spending. Nonresidential fixed investment grew at a 3.9% rate in the third quarter.
Exports grew at a 2.3% pace, a weaker gain than prior quarters. Government spending fell at a 0.1% rate.
The report is also likely to nudge the Federal Reserve closer to raising a key interest rate at its meeting in December. Friday’s report showed a pickup in inflation in the summer, a development the central bank has anticipated.
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