The U.S. economy grew at a 2.7% annual rate from July through September, much faster than first thought, according to a third-quarter report out this morning from the Commerce Department. The strength may fade in the final months of the year if Congress and the Obama administration fail to reach a budget deal. The Commerce Department says growth in the third quarter was significantly better than the 2% rate estimated a month ago. And it was more than twice the 1.3% rate reported for the April-June quarter. The two biggest factors in the upward revision were larger gains in business stockpiles and a boost in export sales, which offset weaker consumer spending. Still, most economists say growth has slowed since then to below 2% in the October-December quarter. That’s generally considered too weak to rapidly lower the unemployment rate. The Associated Press has the full story here.
U.S. economic growth of 2.7% beats third-quarter estimate
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