This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-20796835
The article has changed 5 times. There is an RSS feed of changes available.
| Version 2 | Version 3 |
|---|---|
| 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. |
| However economists still predict much slower growth in the final three months of the year. | |
| Meanwhile existing home sales rose to their highest level for three years. | |
| The National Association of Realtors said sales rose 5.9% to a seasonally adjusted annual rate of 5.04 million in November. | |
| Jobs growth needed | |
| 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. | 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. |
| Economic growth in the final quarter of 2012 is expected to have been harmed by uncertainty over "fiscal cliff" talks. | |
| 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. | |
| 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. | 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. | "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. | 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. |