3Q GDP Up 3.8%

Washington, GA, October 28, 2005–The economy grew at a 3.8% seasonally adjusted annual rate in the third quarter of 2005, according to a Commerce Department report.

Consumer spending contributed most to the growth rate. The trade sector was a slight drag.

Economists were expecting GDP to increase 3.6% in the third quarter after 3.3% in the second quarter.

Core consumer prices increased as a 1.3% rate in the third quarter, down from a 1.7% rate in the second quarter, leaving the year-over-year increase at 1.9%. The government did not provide an estimate for the impact on growth from Hurricanes Katrina and Rita.