WASHINGTON — Real gross domestic product increased 2.5% in the third quarter, revised higher from 2.0% growth seen in the advance estimate last month and exceeding economists’ estimates as the core personal consumption expenditures number was unrevised, the Commerce Department reported Tuesday.
Consumer spending, which accounts for about 70% of GDP, was revised higher to a 2.8% increase for the third quarter from a 2.6% increase announced last month in the Commerce Department’s advance GDP estimate.
Core personal consumption expenditures, the Federal Reserve’s preferred measure of inflation, increased 0.8% for the quarter, unrevised from the initial estimate and the smallest quarterly increase since 2008.
Economists expected GDP would increase 2.4% for the quarter and core PCE would increase 0.8%.
