Economy grows at faster pace in Q3, GDP growth revised up to 2.1%

Washington

THE US economy grew at a healthier clip in the third quarter than initially thought, suggesting resilience that could help give the Federal Reserve confidence to raise interest rates next month.

The Commerce Department on Tuesday said that the nation's gross domestic product grew at a 2.1 per cent annual pace, not the 1.5 per cent rate it reported last month. It said that efforts by businesses to reduce an inventory bloat had not been as aggressive as previously believed.

The growth estimate was also boosted by upward revisions to business spending on equipment and investment in home building. While consumer spending was revised down a bit, its pace …