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| Version 1 | Version 2 |
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| US grows faster in third quarter | US grows faster in third quarter |
| (35 minutes later) | |
| The US economy grew at an annualised rate of 3.1% in the third quarter of this year - faster than previously thought. | The US economy grew at an annualised rate of 3.1% in the third quarter of this year - faster than previously thought. |
| In November the Commerce Department estimated that growth hit 2.7% in the three months to September, but this has now been revised up. | In November the Commerce Department estimated that growth hit 2.7% in the three months to September, but this has now been revised up. |
| But economists still predict much slower growth in the final three months of the year. | But economists still predict much slower growth in the final three months of the year. |
| Uncertainty over "fiscal cliff" talks are expected to have harmed sentiment. | Uncertainty over "fiscal cliff" talks are expected to have harmed sentiment. |
| Disruption caused by Superstorm Sandy is also likely to have hit productivity, and economists are broadly predicting a growth rate of closer to 1.5% for the final quarter. | Disruption caused by Superstorm Sandy is also likely to have hit productivity, and economists are broadly predicting a growth rate of closer to 1.5% for the final quarter. |
| Stronger exports and higher government and consumer spending helped boost growth in the third quarter, the Commerce Department said. | Stronger exports and higher government and consumer spending helped boost growth in the third quarter, the Commerce Department said. |
| Spending by state and local governments rose 0.3% over the period, while consumer spending grew at an annualised rate of 1.6%. | Spending by state and local governments rose 0.3% over the period, while consumer spending grew at an annualised rate of 1.6%. |
| The US states its growth in annualised terms, meaning that its quarterly growth rate is extrapolated as if it was growing at that pace for the whole year. | |
| Meanwhile, separate data from the Labor Department showed that the number of people filing new claims for unemployment benefits increased last week by 17,000 to a seasonally adjusted 361,000. | |
| Todd Schoenberger, from Landcolt Capital in New York, said the 3.1% economic growth needed to translate into jobs growth. | |
| "We need to see this kind of growth, but jobs are also needed, and on that score the higher claims data wasn't terribly surprising," he said. | |
| Looking ahead, many economists, including Federal Reserve chairman Ben Bernanke, have said that growth could accelerate next year if Congress and the White House can reach agreement to solve the fiscal cliff and avoid the steep tax rises and sharp spending cuts that would take effect in January. |