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U.S. third-quarter GDP revised up to 4.1%

The U.S. economy expanded at a 4.1% annual clip in the third quarter, the strongest performance in two years, owing to faster consumer spending and more business investment in intellectual property such as software, according to newly revised government figures. The Commerce Department previously reported that gross domestic product had risen at a 3.6% annual rate. Consumer spending rose 2% instead of 1.4% as previously reported, though the increase in outlays was largely directed toward gasoline and health care. Business investment in software was revised up sharply to a 5.8% increase from 1.7%. Companies stockpiled $115.7 billion worth of inventories in the third quarter, barely changed from the prior reading. Trade also contributed a bit more to faster growth in the third quarter. The increase in exports was revised to 3.9% from 3.7%, while imports were trimmed to 2.4% from 2.7%. The annualized pace of inflation was little changed at 1.9% as measured by the PCE index, or just 1.4% on a core basis. Before the report, economists polled by MarketWatch had forecast GDP to be revised up to 3.7% in the government's final update.