London: The US economy has grown at an annualized rate of 2.7 percent in the third quarter of the year.
The figure is significantly higher than the two percent initial estimate that the Commerce Department had released just before the presidential election.
Much of the growth was due to companies rebuilding their inventories, and is not expected to be sustained.
According to the BBC, the revised data confirmed that a 9.5 percent jump in spending by the federal government during the quarter, compared with a 0.2 percent decline the previous quarter, played an important role in the pick-up in growth.
What the first estimate had failed to pick up was the scale of restocking by private-sector businesses, the report said.
The Commerce Department said that this inventory build-up effect, which typically provides a temporary boost to economic activity early on in the recovery from a recession, added 0.77 percentage points to the pick-up in the overall growth rate in the third quarter, the report added.
According to the report, other factors that boosted growth included the continued rise in consumer spending, stronger exports, and a slight rebound in homebuilding activity from historically low levels.
First Published: Friday, November 30, 2012, 12:20