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US services data point to upward revision to third-quarter GDP
[WASHINGTON] The US economy likely grew at a much stronger pace in the third quarter than previously reported, as data on Wednesday showed spending on services expanding at a brisk clip.
The Commerce Department's quarterly services survey, or QSS, showed services outlays increased much more vigorously than the government had assumed when it published its second gross domestic product estimate for the third quarter last month.
Economists said the data suggested third-quarter consumer spending could be raised by at least two-tenths of a per centage point from a 2.2 per cent annual rate when the government publishes its third estimate later this month.
That combined with data on wholesale inventories and construction spending could see third-quarter GDP revised up to a 4.4 per cent annual pace from the 3.9 per cent rate reported last month.
"This upward revision implies slightly stronger momentum for services consumption heading into the fourth quarter, but is of little significance to our forecast for fourth-quarter GDP growth," said Daniel Silver, an economist at JPMorgan in New York.