Third-Quarter GDP Revised Downward to 2.2% from 2.8%

The U.S. economy expanded at a lower rate than previously reported in the third quarter, growing at a 2.2% annual rate versus the 2.8% reported last month, the Commerce Department said Tuesday.

The gross domestic product gain was the first in a year, but the revised increase was lower than economists forecasts of 2.8%, Bloomberg reported.

The GDP fell 0.7% in the second quarter and the economy had contracted 3.8% in the 12 months through June, the worst such performance in 70 years, Bloomberg reported.

Consumer spending, which accounts for about 70% of the economy, rose at a 2.8% rate, following a 0.9% downturn in the second quarter.

Third-quarter corporate profits, also reported Tuesday, rose 10.8%, the biggest gain in more than five years.

Tuesday’s GDP report was the final report for the third quarter of 2009.