A smaller trade deficit and a surge in defense spending buoyed U.S. economic growth in the third quarter, but other details of Thursday’s report hinted at some loss of momentum in activity.
Gross domestic product grew at a 3.5% annual rate, the Commerce Department said Thursday, beating economists’ expectations for a 3% pace.
While the pace of growth in business investment, housing and consumer spending slowed from the second quarter, all those categories contributed to growth.
“The report was broadly constructive, with the gains broadly based and pointing to positive underlying momentum in the U.S. economy,” said Millan Mulraine, deputy chief economist at TD Securities in New York.
“However, with some indications of weakness emerging in housing and consumption spending, we expect the pace of growth to slip further in the fourth quarter.”
Read more: Daily Finance