GDP Revised Higher, But 4Q Growth Threatened By Hurricane Sandy And Looming “Fiscal Cliff”

The U.S. economy grew more than previously estimated in the third quarter as a narrower trade deficit and gains in inventory overshadowed a smaller gain in consumer spending.Revised figures from the Commerce Department showed that gross domestic product grew at a 2.7 percent annual rate, up from a 2 percent prior estimate.But economists fear growth will weaken in the October - December quarter due to the aftermath of Hurricane Sandy, as well as the “fiscal cliff” dilemma in Congress. -The National Association of Realtors said on Thursday its Pending Home Sales Index, based on contracts signed in October, rose more than expected, a sign the housing market recovery advanced into the fourth quarter despite Hurricane Sandy and concerns over the looming fiscal cliff.Last week, housing starts rose to their highest rate in more than four years in October, but data this week showed new single-family home sales fell slightly in October.