Economic Growth Rate 2 Percent for Third Quarter, Housing, Consumer and Government Spending are Drivers

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The U.S. economy, the number one issue among voters, grew at a two percent rate in the third quarter, according to Commerce Department Data released Friday.

Increased consumer and government spending and an uptick in the housing industry drove the increase in the country's gross domestic product (GDP), which measures the output of goods, services and property located in the United States.

The second quarter's growth rate was 1.3 percent.

The rate exceeded expectations of economists surveyed by Dow Jones Newswires, who predicted 1.8 percent, The Wall Street Journal reported.

The New York Times reported that stalled corporate spending because of fiscal uncertainty in Washington, recession in some parts of Europe and a deceleration of demand from China could hamper continued growth in the fourth quarter and at the beginning of the new year.

The growth was in spite of what the U.S. Department of Agriculture called the country's most severe and extensive drought in the past 25 years which had a serious impact on production of crops and livestock.

The Census Bureau emphasized in its report that these are advance estimate figures based on incomplete data and subject to revision. The final quarterly estimate will be available Nov. 29.

Purchases of goods and services increased 2.1 percent for the third quarter, up 1 percent from the second, with computers adding .17 percentage points.

Another contributing factor was a decrease in imports, which are subtracted from the GDP.

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