US real gross domestic product grew at an annual rate of 3.4% in the third quarter, according to the third estimate of GDP growth released today by the US Commerce Department. The new estimate is down from the previous estimate of 3.5%.

The general picture of economic growth remains the same; positive contributions from personal consumption expenditures, private inventory investment, nonresidential fixed investment, federal government spending, and state and local government spending were partly offset by negative contributions from exports and residential fixed investment.

Real GDP for the US increased 4.2% in the second quarter.

Reuters reported GDP is still well above the economy’s growth potential, which economists estimate to be about 2%. The Federal Reserve raised interest rates on Wednesday for the fourth time this year, but forecast fewer rate hikes next year and signalled that its tightening cycle is nearing an end in the face of financial market volatility and slowing global growth.

Looking ahead, economists surveyed by MarketWatch predict GDP will slow to a 2.6% annual rate in the fourth quarter, the slowest pace since the first three months of the year.