US economy sees growth pick up

Chrysler production line in US US economic growth was lifted by rising exports

The US economy grew at an annual pace of 2.8% in the third quarter of the year, latest figures have shown.

The growth rate was faster than expected, and was an improvement on the 2.5% pace seen in the previous quarter.

Growth was lifted by rising exports, businesses restocking shelves and a pick-up in home construction.

However, the pace of growth in consumer spending - which accounts for about two-thirds of US economic activity - slowed from the previous quarter.

Consumer spending grew at annual pace of 1.5%, down from 1.7% in the April-to-June period and the slowest rate since 2011.

The release of the third-quarter GDP figures was delayed by a week because of the partial shutdown of the US government last month.

Chris Thornberg, partner at Beacon Economics, said he thought 2.8% was a "good number".

"You have got to remember at the start of the year there was a $2.8bn tax increase after the fiscal cliff," he said. That, he said, had taken a 1.8% "bite out of consumer income".

Mr Thornberg added: "The only thing that worries me is that some of the growth is coming from inventory build-up, about 0.8%."

The inventory build-up refers to products that have been produced but yet sold, such as cars, he said.

More on This Story

More Business stories

RSS

Features

  • French luxury Tea House, Mariage Freres display of tea pots Tea for tu

    France falls back in love with tea - but don't expect a British cuppa


  • Woman in swimming pool Green stuff

    The element that makes a familiar smell when mixed with urine


  • Female model's bottom in leopard skin trousers as she walks up the catwalkBum deal

    Why budget buttock ops can be bad for your health


  • The OfficeIn pictures

    Fifty landmark shows from 50 years of BBC Two


From BBC Capital

Programmes

  • Tuna and avacadoThe Travel Show Watch

    Is Tokyo set to become the world's gourmet capital?

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.