The U.S. Commerce Department released today its third and final estimate of U.S. real gross domestic product (GDP) for the third quarter of 2014 that showed the economy grew at an annual rate of 5 percent, the highest level since 2003, and up over 1 percent from the second third quarter GDP estimate at 3.9 percent.
The third and final GDP estimate released today comes from more complete sources of data.
Today’s third estimate for real GDP in the third quarter revealed that both personal consumption expenditures (PCE) and non-residential fixed investment expanded higher than previously estimated which should give the Federal Reserve more assurance that the economy is on the right track as it considers hiking rates in 2015.
Second quarter U.S. GDP expanded 4.6 percent after decreasing -2.9 percent in the first quarter of 2014, largely due to the cold weather that slowed business activity during the first 3 months of 2014.
Federal reserve policy markers expect 2014 GDP growth in the range of 2.3 to 2.4 percent for the entire year of 2014.