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US economic growth rate quickens | US economic growth rate quickens |
(40 minutes later) | |
The US economy grew at an annualised rate of 2% in the July-to-September period, an acceleration on the previous quarter, official figures have shown. | The US economy grew at an annualised rate of 2% in the July-to-September period, an acceleration on the previous quarter, official figures have shown. |
The expansion came despite continuing high unemployment and weakness in the housing market. | The expansion came despite continuing high unemployment and weakness in the housing market. |
The 2% figure is an improvement on the upwardly revised 1.7% increase between April and June, but less than the 3.7% growth recorded from January to March. | The 2% figure is an improvement on the upwardly revised 1.7% increase between April and June, but less than the 3.7% growth recorded from January to March. |
The Federal Reserve suggested last week it would do more to boost the economy. | The Federal Reserve suggested last week it would do more to boost the economy. |
To do this, the Fed - the US central bank - is expected to announce next month that it will resume quantitative easing - injecting fresh money into the economy through the purchase of government bonds. | To do this, the Fed - the US central bank - is expected to announce next month that it will resume quantitative easing - injecting fresh money into the economy through the purchase of government bonds. |
Compared with the preceding quarter, the US economy grew by 0.5% between July and September. | Compared with the preceding quarter, the US economy grew by 0.5% between July and September. |
The economy is continuing to experience a slow recovery by historical standards, with the unemployment rate at 9.6% and Americans increasingly nervous about the future. | |
The new figures confirm the picture of an economy that is continuing to recover from a severe recession, but not very robustly. | |
The 2% annualised figure means the economy grew by 0.5% in the third quarter of this year. | |
It is not enough to make a sustained impact on the country's high level of unemployment. | |
The figure is not very helpful for President Obama ahead of elections next week. | |
He can argue that the economy has been brought back from the brink of depression, but the outlook is gloomy for those who have lost their jobs. | |
This is expected to manifest itself in big losses for President Barack Obama's Democratic Party in Tuesday's congressional elections, which are being seen as a vote on his economic performance. | |
'Disappointing' | 'Disappointing' |
The Commerce Department's figures showed that businesses building up their inventories - stocks of goods and materials - contributed most of the US economic expansion during the third quarter. | The Commerce Department's figures showed that businesses building up their inventories - stocks of goods and materials - contributed most of the US economic expansion during the third quarter. |
The growth in business inventories made up more than two-thirds of the 2% annualised expansion in the economy. | The growth in business inventories made up more than two-thirds of the 2% annualised expansion in the economy. |
However, consumer spending also increased, despite continuing high US unemployment. | |
Consumer spending rose 2.6% during the third quarter, up from 2.2% in the second. | Consumer spending rose 2.6% during the third quarter, up from 2.2% in the second. |
"[Economic] growth is still positive, but a bit disappointing," said Scott Brown, chief economist at Raymond James & Associates. | "[Economic] growth is still positive, but a bit disappointing," said Scott Brown, chief economist at Raymond James & Associates. |
"It's not where we would like it to be at this point of the recovery." | "It's not where we would like it to be at this point of the recovery." |
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