The upward revision was due to improvements in consumer and business spending growth, as well as fewer imports, which offset the drag of a slower pace of inventory buildup.
When measured from the revenue side, the economy grew at a rate of 0.3%. The Gross Domestic Income (IIB) had contracted at a rate of 0.8% in the second quarter. In principle, GDP and IIB should be the same, but in practice they diverge, since they are estimated using different and largely independent sources.
The average GDP and IIB, also referred to as Gross Domestic Production and considered a better measure of economic activity, increased at a rate of 1.6% in the July-September period after contracting at a rate of 0.7% in the second quarter .
Current production earnings declined at a rate of $31.6 billion in the third quarter after rising at a rate of $131.6 billion in the second quarter.
With the Federal Reserve embarking on what has become the fastest rate-raising cycle since the 1980s, the economy is in danger of slipping into recession as early as the first half of next year.
Economists, however, believe that any recession will be short and mild due to unprecedented strength in the labor market.
The housing market is unraveling, with residential investment contracting for six consecutive quarters, the longest period since the housing market crash in 2006.
In addition, consumer and business confidence is on the decline, which could affect spending and undermine job growth.
