There was a sharp upward revision to estimates of US growth in the third quarter but a murky and ambiguous report cast doubt on the underlying strength of the world’s largest economy, write Anjli Raval in New York and Robin Harding in Washington.
Data from the commerce department showed the economy grew at a 2.7 per cent annual rate in the July to September quarter, compared with the 2 per cent estimated last month.
But the cause of the revision was faster growth in business inventories – which cannot be sustained for long – more than offsetting lower estimates of consumption and business spending on equipment.
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