US economy grows at fastest rate in two years in the third quarter
Exports boosted US GDP growth in the third quarter, while consumer spending slowed
Washington — The US economy grew at its fastest pace in two years in the third quarter as a surge in exports and a rebound in inventory investment offset a slowdown in consumer spending. GDP increased at an annual rate of 2.9% after expanding 1.4% in the second quarter, the commerce department said on Friday in its first estimate. That was the strongest growth rate since the third quarter of 2014. Economists polled by Reuters had forecast GDP rising at a 2.5% annual rate in the third quarter. Despite the moderation in consumer spending, the third-quarter rise in growth could help dispel any lingering fears that the economy was at risk of stalling. Over the first-half of the year, growth had averaged just 1.1%. Though the Federal Reserve was mostly focused on employment and inflation, signs of economic strength would be supportive of an interest-rate hike in December. The US central bank raised its benchmark overnight interest rate last December for the first time in nearly a decade....
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