US economy expands 2.6% in 3rd quarter

Fed's preferred inflation indicator, core PCE price index, rises 4.5% in first reading.

US economy expands 2.6% in 3rd quarter

The US economy grew 2.6% in the third quarter of this year, according to the Commerce Department’s first reading released on Thursday.

The market had estimated the figure would come in at 2.4% after the economy contracted 0.6% in the second quarter of the year, April to June.

"The increase in exports reflected increases in both goods and services. Within exports of goods, the leading contributors to the increase were industrial supplies and materials, and nonautomotive capital goods,” said a department statement.

The current‑dollar GDP stood at $291.2 billion in the third quarter.

The US Federal Reserve’s preferred inflation indicator, the core PCE price index, which excludes food and energy prices, rose 4.5% in the third quarter, according to the department.