The U.S. economy expanded at a strong clip in the third quarter, just before the federal government shutdown likely derailed growth and hiring.
Gross domestic product increased at a 4.3% annualized rate last quarter, the Commerce Department said Tuesday, Dec. 23. The reading is the first estimate of third-quarter GDP, and was delayed by the shutdown. GDP estimates are revised as additional data becomes available.
The reading was much stronger than the 3.3% annual increase forecast by economists polled by Trading Economics.
GDP is a measure of all the goods and services produced in the economy. Its growth in any one quarter is compared to the same time period in the previous year to gauge the strength of the overall economy – or its component parts.
The 4.3% expansion in the late summer “reflected increases in consumer spending, exports, and government spending that were partly offset by a decrease in investment,” the Commerce Department explained in a news release. Imports decreased during the quarter.
