Global Times - US sees 2.8% GDP growth in Q3

US sees 2.8% GDP growth in Q3

Source: Global Times
[14:11 November 25 2009]
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The US economy grew at an annual rate of 2.8 percent in the third quarter this year, according to an updated estimate released by the US Department of Commerce on Tuesday.

The revised forecast said the annual gross domestic product (GDP) growth during the July-September period was 2.8 percent, down 0.7 percent from the Commerce Department's advance estimate of 3.5 percent released on Oct 29.

According to analysts, the third-quarter gain was primarily due to rises in consumer spending, exports and massive government spending to revive the economy.

Consumer spending, accounts for 70 percent of the country's economic output, and after falling by 0.9 percent in the second quarter, climbed 2.9 percent in the third quarter, down from the 3.4 percent growth rate first estimated by the government. Exports surged 17 percent in the third quarter after falling by 4.1 percent in the previous three months.

The 2.8 percent GDP growth marked the first increase after four consecutive quarters of contraction, according to analysts, believing that the US has emerged from the worst recession since the Great Depression in the 1930s.

The US economy shrank 0.7 percent in the second quarter and 6.4 percent in the first quarter of this year. In the third and fourth quarters of 2008, the economy contracted 2.7 percent and 5.4 percent respectively.

The Bureau of Economic Analysis of the US Department of Commerce makes three estimates on economic activity for any given quarter. Each is based on more complete data. Tuesday's report was the second reading of the third-quarter GDP data.