GDP grew 2.7% in third quarter

Published Nov 30, 2012 at 04:00AM

Even as the government said that the U.S. economy grew faster than first estimated in the third quarter, economists warned that the rate of expansion could slow sharply before the end of the year as worries mount about the fiscal impasse in Washington.

The Commerce Department said Thursday that gross domestic product expanded at an annual rate of 2.7 percent in the three months ending Sept. 30, well above the 2 percent estimate it initially made in late October. But the revision was driven by increased inventory accumulation and a jump in federal spending — factors unlikely to be repeated in the current fourth quarter, economists said.