GDP grew at a slightly faster pace in the third quarter, government says

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In a small but still encouraging sign the economic recovery has picked up, the government on Thursday revised its estimate of third-quarter growth slightly upward to an annualized rate of 2.6%.

The figure is up from the previous estimate of 2.5%. The Commerce Department said the higher growth rate of gross domestic product -- the total output of goods and services produced in the United States -- was based on updated information showing more spending by consumers, businesses and the federal government, as well as increased exports.

The department’s Bureau of Economic Analysis initially estimated that GDP grew at an annualized rate of 2% from July through September -- weak growth but still an improvement over the 1.7% rate in the second quarter. In the first of two standard revisions to those quarterly figures, the BEA estimated last month that third-quarter growth was at an annual rate of 2.5%.

Even with the revisions, the economy is still growing at too slow a pace to bring down the high unemployment rate, which jumped to 9.8% last month despite continued modest job growth.

-- Jim Puzzanghera