Nation's economy grows 2.7 percent in summer
U.S. economic growth in third quarter is stronger than Commerce Department predicted.
Also in the news ...
Spending could be weak
Economists cite two reasons for the anticipated weakness in consumer and business spending:
• Spending may weaken in the final weeks of the year if lawmakers and President Barack Obama fail to reach a deal to avoid the “fiscal cliff.” That's the name for tax increases and spending cuts that would occur in January without a deal.
Consumer spending grew at a weaker 1.4 percent rate in the third quarter, down from the 2 percent rate estimated a month ago and nearly in line with the 1.5 percent rate in the second quarter.
Business spending on equipment and software fell at an annual rate of 2.7 percent in the third quarter, the first decline since the depths of the recession in April-June 2009.
The report showed continued strength in homebuilding, which rose at an annual rate of 14.2 percent. And government spending expanded at an annual rate of 3.5 percent, marking its first positive contribution to overall economic growth in two years. The rise was driven by a big jump in military spending.
While economists predict slower growth in the final months of the year, several reports suggest economic activity picked up in October and early November.
Business Photo Galleriesview all
- 21543Oklahoma tornadoes: The 'Big Dog,' the little boy and the hug that triumphs over tragedy
- 10852Oklahoma tornadoes: Woman meets the military officer who shared the clothes off his back
- 8707Oklahoma tornadoes: Thunder reverses the role, takes a turn at cheering on the community
- 8666Finding Addyson – One family's struggle in the Moore tornado
- 8648Hobby Lobby argues case before federal judges
- 7837Blake Shelton's "Healing the Heartland" televised tornado benefit set for Wednesday at Chesapeake Energy Arena
- 7718Story behind the photo: Family members describe desperate search for one another after EF5 twister