The U.S. government revised its estimate for third-quarter GDP up, from the initial 1.5% growth rate to 2.1% last week. The upward revision nevertheless fell far short of the 3.9% growth rate estimated for the second quarter.
Nearly all of the improvement was due to revised inventory data, which showed businesses restocking shelves faster than originally estimated in Q3. Improved inventory levels were offset by a slight downward revision in consumer spending.
Nothing in the latest data is expected to derail plans by Federal Reserve policy makers to raise their benchmark interest rate at their meeting next month.