Gross domestic product (GDP) for the third quarter 2012 was revised upward to 2.7% for the third quarter from a previously reported gain of 2%.
The fiscal cliff and aftereffects from Superstorm Sandy could make fourth-quarter growth much slower than previously anticipated.
But economists note that the effects would be temporary and the rebuilding process the economy is experiencing is likely to have a positive impact in subsequent quarters.
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Growing inventories, strong federal spending, and strong exports contributed to the third-quarter’s upward revision.
The increase in private inventories had the largest impact in the upward revision, contributing .77% to the growth against an initial estimate by the government of -.1%.
Consumer spending was revised down to 1.4%. But an increase in corporate profits was also included in the November 29 report.
Profits from current production were up 8.7% from a year ago and after-tax profits that were unadjusted for inventories and capital consumption increased
18.6% from the previous year.
The weekly employment report saw unemployment claims decrease by 23,000 to a seasonally adjusted 393,000 during the week ending November 24.