Economic Growth Revised Lower for 3rd Quarter

Well you could knock me over with a feather.

WASHINGTON – The U.S. economy grew more slowly in the summer than previously thought because consumers spent less than the government had first estimated. But economists expect growth in the current October-December quarter to be stronger.

The Commerce Department says the economy grew at an annual rate of 1.8 percent in the July-September quarter. That was the fastest growth this year, up from 1.3 percent in the April-June quarter. But it was down slightly from last month's estimate that the economy was expanding at a 2 percent rate in the summer.

The government now estimates that consumer spending grew at a 1.7 percent annual rate last summer, instead of 2.3 percent. The updated estimate reflects data showing less spending on hospitals.