US economy grows faster than thought

Chrysler production line in US US economic growth was lifted by increased stockpiles of cars and other goods

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The US economy grew at an annual pace of 3.6% in the third quarter of the year, up from an initial estimate of 2.8%, revised figures have shown.

The growth rate was the fastest since the first quarter of 2012.

The third-quarter performance was an improvement on the 2.5% pace seen in the previous three months.

But the upward revision was mainly driven by a big jump in businesses restocking their inventories, the Commerce Department said.

The annualised growth figure was equivalent to a quarter-on-quarter increase of 0.9%, revised up from 0.7%.

The pace of growth in consumer spending - which accounts for about two-thirds of US economic activity - slowed from the previous quarter.

Consumer spending grew at a revised annual pace of 1.4%, down from 1.8% in the April-to-June period and the slowest rate since late 2009.

The inventory build-up consists of products that have been produced but not yet sold, such as cars.

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