US third-quarter GDP revised down to 3.4%

Third-quarter economic growth in the US was revised down by the Commerce Department on Friday.

Gross domestic product grew 3.4% at an annualised rate, down slightly from October's estimate of 3.5%, with weaker consumer spending the main culprit.

Growth in consumer spending, which accounts for around 70% of the economy, was revised down to 3.5% from 3.6%.

The Commerce Department said personal consumption expenditures (PCE) and exports were revised down, and private inventory investment was revised up, leaving the general picture of economic growth the same.

Capital Economics' senior US economist Andrew Hunter said: "As things stand, growth looks to have slowed in the fourth quarter, albeit to a still-healthy pace of about 2.8%."