U.S. economy grew 4.3% in third quarter, far more than expected, delayed report shows

The U.S. economy grew at a much faster pace than expected in the third quarter, boosted by strong consumer spending, according to a report released Tuesday.

U.S. gross domestic product, the sum of all goods and services produced in the sprawling U.S. economy, grew 4.3% between July and September, the Commerce Department said in its first growth numbers of the third quarter. Economists surveyed by Dow Jones expect a gain of 3.2%.

Consumer spending increased 3.5% in the third quarter after increasing 2.5% in the second quarter.

Higher exports and government spending also boosted growth, while a smaller decline in private fixed investment also contributed.

The report’s release was originally scheduled for October 30, but was delayed by the government shutdown. This release also replaces a second estimate that was due to be released on November 26. The ministry’s Bureau of Economic Analysis will release a final estimate later.

A measure of growth called real final sales to domestic private buyers rose 3% in the quarter, up 0.1 percentage points from the previous period. Federal Reserve policymakers are closely monitoring the data for signs of consumer demand.

The economy grew during the period despite persistent signs of inflationary pressures.

The personal consumption expenditures price index, the Fed’s main inflation gauge, rose 2.8% during the period, and 2.9% for the core index that excludes food and energy. Both rates were higher than previous respective figures of 2.1% and 2.6% and remain well above the Fed’s 2% inflation gauge. Additionally, the on-chain weighted price index, which accounts for changes in consumer behavior such as switching to cheaper products for more expensive items, rose 3.8%, a full percentage point above forecasts.

Although the report presents a largely positive view of the economy, markets reacted little because the data is retrospective. Stock futures were slightly negative while Treasury yields remained higher.

Elsewhere in the report, corporate profits climbed $166.1 billion, or 4.2 percent, compared with a gain of $6.8 billion in the second quarter.