US economy expands at 4.1 per cent rate in third quarter, fastest pace since late 2011 - InfoNews

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US economy expands at 4.1 per cent rate in third quarter, fastest pace since late 2011

FILE - In this Nov. 14, 2013, file photo, President Barack Obama speaks at ArcelorMittal, a steel mill in Cleveland. The Commerce Department releases final third-quarter gross domestic product on Friday, Dec. 20, 2013. (AP Photo/Pablo Martinez Monsivais, File)
December 20, 2013 - 5:35 AM

WASHINGTON - The U.S. economy grew at a solid 4.1 per cent annual rate from July through September, the fastest pace since late 2011 and significantly higher than previously believed. Much of the upward revision came from stronger consumer spending.

The Commerce Department's final look at growth in the summer was up from a previous estimate of 3.6 per cent. Four-fifths of the revision came from stronger consumer spending, primarily in the area of health care.

The 4.1 per cent third quarter growth rate came after the economy expanded at a 2.5 per cent rate in the second quarter. Much of the acceleration reflected a buildup in business stockpiles.

Economists believe growth has slowed to between 2 per cent and 2.5 per cent in the current quarter, in part because they believe inventory growth has slowed.

News from © The Associated Press, 2013
The Associated Press

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