Advance Third-Quarter GDP Shows 2.5% Growth

WASHINGTON — Real gross domestic product expanded 2.5% at an annual rate in the third quarter, following an increase of 1.3% in the second quarter, according to an advance estimate reported by the Commerce Department Thursday.

The last reported increase that high was for the third quarter of last year.

The third-quarter gain, which was on target with the projection from economists polled by Thomson Reuters, reflected positive contributions from personal income expenditures, nonresidential fixed investment, exports, and federal government spending, partly offset by negative contributions from private inventory investment and state and local government spending, the department said.

Personal consumption expenditures increased 2.4%, the highest since the third quarter of 2006, and much higher than the 0.7% gain reported for the second quarter.

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