Consumers are still in a “very frugal mood,” according to a recent report from the Consumer Confidence Board.
Whoops! The bad news in this bulletin is that the U.S. economy didn’t grow at quite the rate—3.5 percent—from July through September that the Department of Commerce previously said it had. The good news: It still grew, albeit at the whittled-down pace of 2.8 percent during that time. —KA
The change in the gross domestic product figure came partly because imports, which count as negative, were higher than thought.
Imports increased at an annual rate of 21%, the biggest gain since the second quarter of 1985, and a big jump on the 16% first thought.
US GDP is expressed as an annualised rate, or annual pace, which shows what the annual rate would be if the latest change continued for the rest of the year.
Following the downward revision, the main US share index, the Dow Jones, ended Tuesday trading down 17 points or 0.2% to 10,434.