The Commerce Department released on Thursday its "advance" estimate for the U.S. gross domestic product (GDP) for the third quarter of 2020, which revealed the U.S. economy climbed more than forecast in the reviewed period.

According to the estimate, the U.S. real GDP grew at an annual rate of 33.1 percent q-o-q last quarter, following a record contraction of 31.4 percent q-o-q in the second quarter, reflecting continued efforts to reopen businesses and resume activities that were postponed or restricted due to COVID-19. That marked the strongest pace of growth in GDP on record.

Economists had expected GDP to expand by 31.0 percent.

According to the report, the advance in real GDP in the third quarter reflected gains in personal consumption expenditures (PCE), private inventory investment, exports, nonresidential fixed investment, and residential fixed investment, which were partly offset by declines in federal government spending (reflecting fewer fees paid to administer the Paycheck Protection Program loans) and state and local government spending. Meanwhile, imports, which are a subtraction in the calculation of GDP, rose.