US economy expands by 4.3% in Q3, exceeding forecasts

By Mucahithan Avcioglu

ISTANBUL (AA) - The US economy expanded by 4.3% on a quarterly basis in the third quarter of the year, beating market expectations of 3.3%.

It followed 3.8% growth in the second quarter, preliminary data from the Bureau of Economic Analysis showed Tuesday.

The rise in real gross domestic product (GDP) in the third quarter primarily reflected a smaller decrease in investment, an acceleration in consumer spending, and upturn in exports and government spending, a bureau statement said.

"Imports, which are a subtraction in the calculation of GDP, decreased," it said.

Real final sales to private domestic purchasers, the sum of consumer spending and gross private fixed investment, rose 3% in the third quarter, compared with an increase of 2.9% in the second quarter, the statement said.

It also said that the price index for gross domestic purchases climbed 3.4% in the third quarter, compared to an increase of 2% in the second quarter.