US GDP grows to 2.9% in Q3 By TII News Service
Nov 21, 2012 , Washington
THE US
economy looks set to ride out the consequences from Hurricane Sandy
and the budget battles in Washington after picking up speed in the third
quarter. It has been reported that the GDP probably
increased at about a 2.9% annual rate in July-September beating the Commerce
Department's initial estimate of 2%. Help is coming from a housing recovery,
strengthening job market and healthier household finances that are driving
gains in consumer confidence.
The 0.3% drop followed a 1.3% gain in September that was larger than previously
reported. Better times may be ahead for the stock market as the economy is showing
a pickup. Shares of American manufacturers and basic materials producers are
most likely to benefit as growth strengthens.
Housing has turned the corner as borrowing costs near a record low are driving
demand. Combined sales of new and existing dwellings climbed to a 5.1 million
annual pace in September, up 40% from an all-time low in July 2010.
Consumer spending accelerated to a 2% annual rate last quarter and has reason to keep growing. The jobless rate has fallen 1 percentage point from a year ago to 7.9% in October; payrolls are growing faster than forecast.
