Unlike the second estimate, which was revised up on volatile stronger inventories, the increase in the third estimate was solid from an economic standpoint. Real final sales, which exclude inventory growth, increased 3.5%. That is up from a 1.9% gain reported in the second estimate and is the largest gain since increasing 3.4% in Q4 2011. If these trends hold, the economic progress in 2014 could be much stronger than the 2.0 -- 2.5% new normal-type growth that many economists are projecting. Most of the upward revision was a result of stronger consumption numbers.
Real personal consumption spending was revised up to 2.0% from 1.4%. That revision added 0.4 percentage points to Q3 2013 GDP growth. The consumption gains came from an upward revision to services spending (0.7% from 0.0%). Fixed investment spending was revised slightly higher. Nonresidential investment spending increased 5.9%, up from an originally reported 3.5% gain. Residential spending was revised down to 10.0% from 13.0%. The net export deficit was revised lower which added about 0.1 percentage points to overall growth. Government spending and inventory levels were essentially unchanged from the second estimate.