America revises up third quarter GDP

America’s Bureau of Economic Analysis (BEA) has produced its second estimate of the country’s third quarter GDP, revising it up from an annual rate of 2% to 2.5%.

The BEA says the American recovery is accelerating even faster than expected. Growth in the second quarter was only 1.7%.

According to the BEA, the GDP increase reflects improvements in personal consumption, private inventory building, non-residential fixed investment, exports and federal government spending. (article continues below)

The only negative contributor was residential fixed investment, which is still suffering from America’s housing bust. Imports also increased.

The improved figures may put further pressure on American authorities to rein in the deficit and slow quantitative easing.

Alternatively, further analysis may reveal the numbers rely too heavily on government spending, giving fiscal and monetary stimulus further momentum.