The US economy expanded at a 2.5 percent annual rate in the third quarter, faster than the 2.0 percent rate estimated a month ago, the Commerce Department reported Tuesday.

In the second quarter, real GDP increased 1.7 percent.

The revisions to real gross domestic product in the third quarter were largely due to faster consumer spending and higher exports.

Economists were predicting a revision to about 2.4 percent.

The core personal consumption expenditure price index rose 0.8 percent, unrevised from initial estimates.

US corporations’ profits rose 2.8 percent to $1.66 trillion annualized in the third quarter. For the year, corporate profits were up 27.8 percent.

The government’s profits data are adjusted for inventory valuations and capital consumption.

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