Third quarter growth at 2.7 percent

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WASHINGTON, Nov. 29 (UPI) -- The U.S. Commerce Department raised its estimate of economic growth for the third quarter Wednesday from 2 percent to 2.7 percent.

The nation's gross domestic product rose 1.3 percent in the second quarter compared to the first.

The estimate for the third quarter is based on more complete data than was available in October, when the first estimate was released.

While the figure is an improvement, it did not match the 2.8 percent forecast by economists. That implies the stock market will make an adjustment, as investors were making bets based on a 2.8 percent increase.

The Commerce Department said the latest figure is based on a 1.4 percent increase in consumer spending and an 8.7 percent rise in durable goods production. Non-durable goods production rose 1.1 percent, while service-oriented businesses contributed 0.3 percent.

On the negative side, non-residential fixed investment declined 2.2 percent after rising 3.6 percent in the previous quarter. Residential fixed investment rose 14.2 percent when adjusted for inflation. In the previous quarter, real residential fixed investment rose 8.5 percent.