Xinhua, Washington :
The US economy in the third quarter grew at its fastest pace in more than a decade, supported by robust consumer spending and business investment.
US real gross domestic product (GDP) increased at an annual rate of 5 percent in the third quarter, the U.S. Commerce Department said Tuesday in its final estimate, a remarkable revision from the second estimate of 3.9 percent.
It marked the strongest growth pace for the world’s largest economy since the third quarter of 2003. The strong upward revision reflected the strong performance of personal consumption expenditures and nonresidential fixed investment.
Personal consumption, which accounts for about 70 percent of the U.S. economy, grew 3.2 percent, compared with an increase of 2. 5 percent in the second quarter. Exports increased 4.5 percent, slower than an increase of 11.1 percent in the previous quarter.
Nonresidential fixed investment increased 8.9 percent, down from 9.7 percent in the second quarter but up from the previous estimate of 7.1 percent. Residential fixed investment increased 3. 2 percent, down from 8.8 percent in the previous quarter.
After experiencing an unexpected contraction in the first quarter, the U.S. economy has regained robust growth momentum. The U.S. GDP grew at an annual pace of 4.6 percent in the second quarter, meaning it has now experienced the two strongest back-to- back quarters of growth since 2003.
“The strong GDP growth is consistent with a broad range of other indicators showing improvement in the labor market and increasing domestic energy security,” Jason Furman, chairman of the White House’s Council of Economic Advisers, said in a statement on Tuesday.
By November, the country has already added more jobs in 2014 than in any full calendar year since the late 1990s. Data for the recent months indicated the economy’s resilience against the backdrop of a weakening global economy.
According to the latest projections by the Federal Reserve, the U.S. economy will expand at 2.3-2.4 percent this year, higher than its September’s forecast of 2-2.2 percent. It maintained its forecast for 2015 GDP growth unchanged at 2.6-3 percent. Considering the improvements in the labor market, the central bank expected the unemployment rate to drop to 5.8 percent this year and further to 5.2-5.3 percent in 2015, both lower than its September’s projections.
In view of lower energy prices, the Fed sharply cut its inflation projections. It expected the price index for personal consumption expenditures to reach 1.2-1.3 percent this year, lower than its September forecast of 1.5-1.7 percent. In 2015, the inflation rate will stay around 1-1.6 percent.
The US economy in the third quarter grew at its fastest pace in more than a decade, supported by robust consumer spending and business investment.
US real gross domestic product (GDP) increased at an annual rate of 5 percent in the third quarter, the U.S. Commerce Department said Tuesday in its final estimate, a remarkable revision from the second estimate of 3.9 percent.
It marked the strongest growth pace for the world’s largest economy since the third quarter of 2003. The strong upward revision reflected the strong performance of personal consumption expenditures and nonresidential fixed investment.
Personal consumption, which accounts for about 70 percent of the U.S. economy, grew 3.2 percent, compared with an increase of 2. 5 percent in the second quarter. Exports increased 4.5 percent, slower than an increase of 11.1 percent in the previous quarter.
Nonresidential fixed investment increased 8.9 percent, down from 9.7 percent in the second quarter but up from the previous estimate of 7.1 percent. Residential fixed investment increased 3. 2 percent, down from 8.8 percent in the previous quarter.
After experiencing an unexpected contraction in the first quarter, the U.S. economy has regained robust growth momentum. The U.S. GDP grew at an annual pace of 4.6 percent in the second quarter, meaning it has now experienced the two strongest back-to- back quarters of growth since 2003.
“The strong GDP growth is consistent with a broad range of other indicators showing improvement in the labor market and increasing domestic energy security,” Jason Furman, chairman of the White House’s Council of Economic Advisers, said in a statement on Tuesday.
By November, the country has already added more jobs in 2014 than in any full calendar year since the late 1990s. Data for the recent months indicated the economy’s resilience against the backdrop of a weakening global economy.
According to the latest projections by the Federal Reserve, the U.S. economy will expand at 2.3-2.4 percent this year, higher than its September’s forecast of 2-2.2 percent. It maintained its forecast for 2015 GDP growth unchanged at 2.6-3 percent. Considering the improvements in the labor market, the central bank expected the unemployment rate to drop to 5.8 percent this year and further to 5.2-5.3 percent in 2015, both lower than its September’s projections.
In view of lower energy prices, the Fed sharply cut its inflation projections. It expected the price index for personal consumption expenditures to reach 1.2-1.3 percent this year, lower than its September forecast of 1.5-1.7 percent. In 2015, the inflation rate will stay around 1-1.6 percent.
