U.S. economy grows at faster pace in Q3

U.S. economic growth in the third quarter of this year was revised up, as the consumer spending expanded faster than previously reported.

The economy grew at an annual rate of 3.2 percent in the third quarter of this year, higher than the advance estimate of 2.9 percent and the second quarter growth of 1.4 percent, according to data released by the Commerce Department on Tuesday.

The general picture of economic growth remained the same, while the increase in personal consumption expenditures was larger than previously estimated, said the Commerce Department.

Consumer spending, which accounts for about 70 percent of the U.S. economy, increased 2.8 percent in the third quarter, slightly higher than the 2.1 percent increase previously reported but still lower than the 4.3 percent increase in the second quarter.

The strong consumer spending growth in recent quarters has been supported in part by improvements in household balance sheets, with household debt service as a share of disposable income at a historically low level, said Jason Furman, chairman of the Council of Economic Advisers of the White House, on Tuesday.

These figures are likely to reinforce the expectation that the Federal Reserve would raise interest rate in December.

Fed Chair Janet Yellen said recently that it will be appropriate for the central bank to hike interest rate relatively soon, and warned of the risks of keeping rate low for too long.

The Fed will hold its next policy meeting, also the final of the year, on Dec. 13-14. Investors widely expected the Fed would move the rates at the December meeting. Endi