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| US economy in late summer revival | US economy in late summer revival |
| (10 minutes later) | |
| The US economy grew more quickly than previously thought between July and September, the Department of Commerce has said, releasing updated figures. | The US economy grew more quickly than previously thought between July and September, the Department of Commerce has said, releasing updated figures. |
| Gross domestic product (GDP) rose by 4.9% in the three month period, compared with an earlier estimate of 3.9%, the commerce department said. | |
| Strong export sales and businesses investing in more stock were the main reasons for the improvement, it said. | Strong export sales and businesses investing in more stock were the main reasons for the improvement, it said. |
| The performance is not expected to be repeated in the current quarter. | The performance is not expected to be repeated in the current quarter. |
| Analysts said that a number of factors will probably slow growth, including the continued fall out from the global credit crunch and a housing market slump. | Analysts said that a number of factors will probably slow growth, including the continued fall out from the global credit crunch and a housing market slump. |
| One of the areas expected to be hit is consumer spending, an effect suggested by the latest figures from the department store chain Sears. | One of the areas expected to be hit is consumer spending, an effect suggested by the latest figures from the department store chain Sears. |
| The company said that its net income fell to $2m (£970,000) for the three months to 3 November from $196m in the same period last year. | The company said that its net income fell to $2m (£970,000) for the three months to 3 November from $196m in the same period last year. |
| Sears blamed the decline on increased competition, the housing market, the credit crunch and unseasonably warm weather, which hit clothing sales. | Sears blamed the decline on increased competition, the housing market, the credit crunch and unseasonably warm weather, which hit clothing sales. |
| Sears shares fell 14% in early trading. | |
| Housing market | |
| There was also fresh news about the state of the housing sector, showing that average prices paid for new homes had fallen but that sales had risen in October. | |
| The median sales price for a new home slid 8.6% to $217,800 compared with September, according to the Department of Commerce. | |
| Sales of new homes rose to an annual rate of 728,000 from September's figure of 716,000. | |
| But the figure had only risen because September's figure had been revised so far downwards. | |
| "They technically went up, but don't be fooled - we've had a net revision of 74,000 over the last few months," said Adam York from Wachovia Economics. | |
| "The overall picture is housing is still going to decline at least for the rest of this year. We would not be willing to call September the bottom." |