This article is from the source 'washpo' 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.washingtonpost.com/us-economy-grew-at-a-rate-of-5-percent-in-third-quarter-the-fastest-in-more-than-a-decade/2014/12/23/a754e61e-e36c-44f3-ab74-ae79bdd10137_story.html?wprss=rss_homepage

The article has changed 5 times. There is an RSS feed of changes available.

Version 1 Version 2
U.S. economy grew at a rate of 5 percent in third quarter, the fastest in more than a decade U.S. economy grew at a rate of 5 percent in third quarter, the fastest in more than a decade
(35 minutes later)
The U.S. economy grew at its fastest rate in more than a decade between the months of July and October, helped by a surge in consumer spending, according to government data released Tuesday morning. The U.S. economy grew at its fastest rate in more than a decade between the months of July and October, according to government data released Tuesday morning, marking the latest sign that a once-sluggish recovery is now running at full speed.
The Commerce Department said gross domestic product growth hit an annualized rate of 5 percent in the third quarter, revised upward from the previous estimate of 3.9 percent. Not since 2003 has the economy expanded so quickly.The Commerce Department said gross domestic product growth hit an annualized rate of 5 percent in the third quarter, revised upward from the previous estimate of 3.9 percent. Not since 2003 has the economy expanded so quickly.
The third quarter performance, coupled with 4.6 percent growth in the second quarter, amounts to the best sign since the Great Recession that the U.S. recovery has hit its stride. Stocks jumped on the news. The Dow Jones industrial average topped 18,000 for the first time after markets opened. The better-than-expected GDP numbers helped push the Dow Jones Industrial Average above 18,000 for the first time, the latest in a series of record highs. The S&P 500 also edged up.
With oil prices falling, consumers are saving hundreds at the pumps and have more money in their wallets. That’s helped fuel an uptick in consumer spending, which coincides with a year of robust job growth. Economists think the run of good news could spill into the fourth quarter, paving the way for the sharpest U.S. expansion since the recession. Economists say the United States is showing signs of a virtuous cycle in which workers can find suitable jobs that pay well and allow them to spend money. A year of robust labor market growth has been helped by falling oil prices, which amounts to a de facto tax cut and saves consumers hundreds annually at the pump.
The latest third-quarter estimate  rose “for all the right reasons, notably stronger domestic demand,” Diane Swonk, chief economist at Mesirow Financial, wrote in a blog post. The contribution of consumer spending was revised upward by 0.7 percent from the previous Commerce Department estimate, given last month. Business investment was revised upward by 0.2 percent.
“Indeed, depending on the outcome for the fourth quarter, growth for the year could now surpass 2.5 percent, which is much better than anyone expected just a month ago,” Swonk wrote.
At an annualized rate, consumer spending was up in the third quarter by 2.3 percent. That spending accounts for about two-thirds of the GDP. Though incomes have stagnated for years among the middle and lower classes, there were nascent signs of wage growth last month, and households have deleveraged bad debt that held them back in the wake of the financial crisis.
Consumer sentiment is at a post-recession high, and the nation has seen its best year of hiring in 15 years. The latest six months of expansion suggest that a surprisingly poor first quarter performance — when the GDP shrank 2.1 percent — was an anomaly, likely the result of miserable East Coast winter weather that kept consumers indoors.
Economists think the run of good news could spill into the fourth quarter, paving the way for the sharpest U.S. expansion since the recession.
Personal consumption was up 3.2 percent in the third quarter.Personal consumption was up 3.2 percent in the third quarter.
For quarterly gross domestic product, which measures all goods and services produces, the U.S. government releases an initial estimate, and then two revisions. This was the second of those revisions.For quarterly gross domestic product, which measures all goods and services produces, the U.S. government releases an initial estimate, and then two revisions. This was the second of those revisions.