The US economy grew at its fastest pace in 11 years in the third quarter, signaling toward a strong growth which has determinedly moved into higher gear.
On Tuesday, the Commerce Department revised its estimate for the growth of gross domestic product (GDP) to a 5.0 percent pace annually, citing stronger business and consumer spending than it had earlier assumed.
Analysts said that it was the fastest growth pace reported since the third quarter of 2003. The country’s economy was earlier reported to have expanded at a rate of 3.9 percent.
The country’s GDP growth has been revised up by 1.5 percentage points since the first estimate was published in the month of October.
According to the analysts, the major revisions aren’t strange as the government does not have full record of the initial estimates.
Meanwhile, the US Treasury debt yields increased a bit and the US stock index futures extended their gains following the report.
The US dollar surged to a fresh eight-year high against its major counterparts.
The country’s economy expanded at a rate of 4.6 percent in the second quarter, experiencing the strongest back-to-back quarters of growth on two occasions since 2003.
Several economists had expected a 4.3 percent pace of growth. But the growth pace likely slowed down in the fourth quarter.
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