GDP Surges Ahead in Third Quarter

Washington, DC, November 29, 2007—U.S. economic growth surged ahead at the fastest pace in four years during the third quarter, the government reported on Thursday.

Gross domestic product grew at a revised 4.9% annual rate instead of 3.9% reported a month ago. It was the strongest quarterly growth rate since the third quarter of 2003 when GDP surged at a 7.5% rate.

The department will publish its final figure for third-quarter performance on December 20. A slumping housing sector and waning consumer confidence is predicted to slow fourth-quarter growth.

Companies built up inventories twice as fast during the third quarter as the government had estimated a month ago – at a $32.9 billion annual rate instead of $15.7 billion.