US posts better-than-expected growth

Written By Unknown on Kamis, 30 Oktober 2014 | 20.24

30 October 2014 Last updated at 13:10

The US economy grew at an annual rate of 3.5% in the July-September quarter, the Commerce Department has said.

That was better than the 3% pace that economists had been expecting and follows the 4.6% growth rate recorded in the April-June quarter.

Strong export growth and higher government spending helped to boost growth in the third quarter.

In a sign of confidence in the US recovery, on Wednesday the Federal Reserve ended its stimulus scheme.

The fall in unemployment to a six-year low has helped boost that confidence.

"Today's number represents a return to a healthy-looking trend. The most recent IMF forecasts suggest the US economy will grow 3.1% next year and 3.0% in 2016, and these could be revised further upwards in the coming months," said Ben Brettell, senior economist at Hargreaves Lansdown stockbrokers.

It has been a volatile year for US growth data.

In the first quarter the economy contracted at an annual rate of 2.1% after severe weather hampered economic activity.

But the second quarter saw a rebound, growing at an annual pace of 4.6%.

Taken together the latest two quarters are the strongest consecutive quarters of growth since the second half of 2003.


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