The U.S. economy rose at its strongest pace in more than two years in the third quarter, boosted by solid business spending, and is on track for what could be a moderate increase next year from wide tax cuts approved by Congress this week.
Gross domestic product grew at a 3.2 percent annual pace in 3rd quarter, the Commerce Department reported on Thursday. It was the fastest pace since the first quarter of 2015 and was an increase compared with the second quarter’s 3.1 percent rate.
Growth in consumer spending, which accounts for about 70 percent of the economy, was revised down to a 2.2 percent. Consumer's expenditure rose at an impressive 3.3 percent rate in the second quarter.
Economists are predicting a moderate economic increase due to the tax cuts, which includes slashing the corporate income tax rate to 21 percent from 35 percent.