Economy Grew Less Than Previously Thought In Third Quarter

By Mark Memmott

Published November 22, 2011 at 7:45 AM CST

The U.S. economy grew at a 2 percent annual rate in the third quarter, the Bureau of Economic Analysis just reported.

That's a downward revision from BEA's original estimate of 2.5 percent growth. The agency will issue one more estimate for the quarter on Dec. 22.

According to The Associated Press, the "downward revision was largely because of a lower estimate for inventory rebuilding. Economists believe this could lead to stronger growth in the current quarter, if businesses foresee more demand."

Reuters reaches the same conclusion, saying that "sturdy consumer spending" this quarter should prompt businesses to add to inventories — and give the whole economy at least a little lift.

Mark Memmott

Mark Memmott is NPR's supervising senior editor for Standards & Practices. In that role, he's a resource for NPR's journalists – helping them raise the right questions as they do their work and uphold the organization's standards.

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