WASHINGTON - The U.S. third-quarter real gross domestic product revision Tuesday showed momentum going into the current quarter, a three-tenths upward adjustment to a new 3.2% annual growth rate, the Commerce Department reported.

The revision was at the top of the forecast range and still the strongest quarter in two years.

The PCE price index was a 1.4% annual rate, unchanged from the original Oct. 28 report and the core PCE price index stayed at 1.7%.

The GDP chained price index was revised down a tenth to a 1.4% rate and its core rate stayed at 1.9%.

Current dollar GDP was revised up two tenths to 4.6%. 

There were upward revisions to consumer spending and residential fixed investment, partially offset by downward adjustments to inventories and non-residential fixed investment.

Personal consumption expenditures rose an upward revised 2.8% in the third quarter, a deceleration from the 4.3% rise in the second quarter but better than the 1.6% gain in the first quarter.

Overall the picture remained the same, with acceleration in private inventory investment, exports and federal government spending along with smaller decreases in state/local government spending and a deceleration in nonresidential fixed investment.

Current dollar GDP was revised up two tenths to a 4.6% annual rate.

The details of the revision in the Bureau of Economic Analysis technical note showed the upward revision to consumer spending was in both goods and services, with the goods measure benefiting from a tick up in the "other" category of nondurables and to motor vehicles and parts.

In services, the upgrade was primarily to housing and utilities.

The upward adjustment in residential fixed investment was mainly attributed to single family housing. On the nonresidential side there were downward revisions to equipment and intellectual property products, partially offset by and upward revision to nonresidential structures.

For inventories, there were downward adjustments in construction, mining, utilities and manufacturing.

The second reading of the third quarter included the first measure of corporate profits, up 6.6% to a $2.155 trillion annual rate.

The latest reports also revised second quarter wages and salaries, upwardly adjusted by $38.6 billion to a $8.253 trillion annual rate.

Market News International is a real-time global news service for fixed-income and foreign exchange market professionals. See www.marketnews.com.

Market News International is a real-time global news service for fixed-income and foreign exchange market professionals. See www.marketnews.com.