Economy in U.S. Grows at 3.6% Rate on Bigger Inventories

The U.S. economy expanded more in the third quarter than initially estimated as unsold merchandise piled up at the fastest rate since early 1998, setting the stage for a possible slowdown in the final three months of the year.

Gross domestic product rose at a 3.6 percent annual rate, up from an initial estimate of 2.8 percent and the strongest since the first quarter of 2012, the Commerce Department in Washington said today. The boost from inventories accounted for almost half the gain in growth, while household spending cooled and business investment in equipment stagnated.