Economic growth in the U.S. was stronger than forecast in the third quarter, propelled by gains in consumer spending, defense outlays and homebuilding.
Gross domestic product, the value of all goods and services produced, rose at a 2 percent annual rate after climbing 1.3 percent in the prior quarter, Commerce Department figures showed today in Washington. The median forecast of 86 economists surveyed by Bloomberg called for a 1.8 percent gain.
“We are encouraged by the improvement we’re seeing in consumer spending and housing,” said Dean Maki, chief U.S. economist in New York for Barclays Plc, who correctly forecast the rate of growth. “These will be dominant themes in the fourth quarter too.”
Consumer confidence rose to a five-year high in October, another report today showed, suggesting that gains in spending can be sustained as the real-estate revival bolsters household finances…
Read more: Bloomberg