The U.S. economy bounced back from a prolonged slump in the third quarter as exports surged, businesses replenished depleted stocks and consumer spending picked up moderately.
As USA Today reports, Commerce Department figures show the nation’s gross domestic product—the value of all goods and services produced in the economy—increased at a seasonally adjusted annual rate of 2.9%.
Economists surveyed by Bloomberg had forecast 2.6% growth.
The economy expanded at an anemic 1% average pace the previous three quarters. Business spending has been listless since late 2014 as a result of the oil sector downturn, a sluggish global economy and a strong dollar that drove up export prices.
Also, disappointing sales led companies to add little to inventories.
Companies, in turn, are starting to spend again, at least modestly. Business stockpiling contributed 0.61 percentage points to growth after being a drag on the economy for five straight quarters.
Business investment grew 1.2%, up from 1% in the second quarter. Spending on structures jumped 5.4% as oil producers began to resuscitate drilling activity, but outlays for equipment fell 2.7%, the fourth straight decline. Some firms have suggested they’ve reined in capital spending in part because of uncertainty surrounding the presidential election.
