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Third-Quarter Growth in U.S. Revised Higher on Services Spending

Bloomberg (12/20/13) Victoria Stilwell

U.S. gross domestic product rose at a 4.1% annualized rate during the third quarter, the highest since the final three months of 2011, according to the U.S. Department of Commerce. The figure has been revised upwards from the previous estimate of 3.6%.

Economists surveyed by Bloomberg had predicted a rise of 3.6%. Inventories accounted for a third of the gain in GDP, while retail sales increased in October and November. The wealth effects of rising equities and house prices are being bolstered by the improving labor market, leading to wage and salary gains. Consumer purchases rose 2.0%.