US economy grew 3.1% in Q3

21 December 2012

The US economy experienced stronger-than-expected growth during the third quarter of the year, new official figures have shown.

According to data released yesterday (20 December) by the Commerce Department, American gross domestic product (GDP) expanded by 3.1 per cent in the three months between July and September.

This represents a significant upgrade on the previous estimate of 2.7 per cent growth and the government department attributed this rise primarily to a combination of higher consumer spending and exports.

In addition, the National Association of Realtors revealed that domestic property sales increased by 5.9 per cent to a seasonally-adjusted annual rate of 5.04 million in November.

However, generally, analysts do not believe this rate of expansion will be maintained in the final quarter of 2012.

For instance, Robert Kavcic of BMO Capital Markets Economics told AFP: "While strong on the surface, the core of the third quarter still looks much softer than the headline."

By Asim Shah

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