The U.S. economy grew at its fastest pace in more than two years in the third quarter, powered by robust business spending, and is poised for what could be a modest lift next year from sweeping tax cuts passed by Congress this week.

Gross domestic product expanded at a 3.2 percent annual rate last quarter, the Commerce Department said in its third GDP estimate on Thursday.

While that was slightly down from the 3.3 percent rate reported last month, it was the quickest pace since the first quarter of 2015 and was a pickup from the second quarter's 3.1 percent rate.

It also marked the first time since 2014 that the economy experienced growth of 3 percent or more for two straight quarters. But the growth pace for the July-September period likely overstates the health of the economy.

Read more in CNBC.