Economy Grows 2.2%, Exceeding Expectations
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.
WASHINGTON — The economy lost steam in the late summer but not nearly as much as first thought, a hopeful sign the country is weathering the housing slump.
The Commerce Department reported yesterday that economic growth clocked in at a 2.2% annual rate in the July-to-September quarter.
The new reading was a considerable upgrade from the government’s earlier estimate of a 1.6% growth rate, which would have been the worst showing in more than three years if it had held up.
The main factors for the higher estimate were stronger inventories amassed by companies and a trade deficit that didn’t strain economic growth as much. The improvement, however, could not hide the fact that the economy has been losing momentum all year.
