Thirdquarter GDP growth raised to 5.2 rate from 4.9
Consumer spending revised lower; core inflation trimmed
Corporate profits increase 4.3; saving rate raised

WASHINGTON, Reuters The U.S. economy grew faster than initially thought in the third quarter as businesses built more warehouses and accumulated machinery equipment, but momentum appears to have since waned as higher borrowing costs curb hiring and spending.

The growth pace, which was the quickest in nearly two years, however, likely exaggerated the health of the economy last quarter. When measured from the income side, economic activity increased at a moderate pace. Nevertheless, the report from the Commerce Department on Wednesday indicated the economy continued to grow despite fears of a recession that have persisted since late 2022.

No sign of darkening skies for the economy in today39;s report, but growth is cooling, said Christopher Rupkey, chief economist at FWDBONDS in New York. There39;s simply not as much wind in the economy39;s sails in the final quarter this year.

Gross domestic product increased at a 5.2 annualized rate last quarter, revised up from the previously reported 4.9 pace, the Commerce Department39;s Bureau of Economic Analysis BEA said in its second estimate of thirdquarter GDP. It was the fastest pace of expansion since the fourth quarter of 2021.

Economists polled by Reuters had expected GDP growth would be revised up to a 5.0 rate. The economy grew at a 2.1 pace in the AprilJune…