US GDP rises more than expected in third quarter

The US economy grew more than expected in the third quarter, the Commerce Department revealed on Tuesday.

Gross domestic product (GDP) rose by annualised 3.9%, compared to 3.5% previously reported. Analysts had predicted GDP would slow to a 3.3% gain.

Quarter-on-quarter it climbed by 1.4% following a 1.3% increase and expectations for the same level of growth.

Meanwhile, US personal consumption was revised up to 2.2% in the third quarter from 1.8%, compared to an estimated 1.9% gain.

Federal Reserve policymakers are keeping a close watch on the health of the world's biggest economy as they consider when to raise interest rates.

"The unexpected strength of third-quarter GDP growth, which was revised up to 3.9% annualised from 3.5%, is another reason to expect the Fed to begin normalising interest rates sooner than expected next year. We still anticipate the first rate hike coming in March next year," Capital Economics said.