The third-quarter gross domestic product, the broadest measure of economic health, was double the 1.4 per cent pace in the second quarter, the Commerce Department reported today.
GDP growth went into a pronounced slowdown late last year. Exporters were constrained by a rising dollar, which made their products more expensive on overseas markets, and businesses cut back on their inventory rebuilding in the face of weaker sales.
The latest growth figure was stronger than the 2.5 percent gain many analysts had been expecting. The GDP report was one of the last major economic reports the government will issue before voters go to the polls on Nov. 8. Republican presidential candidate Donald Trump has cited anemic GDP growth rates as evidence that Democratic economic policies have not worked.
Even with the acceleration in the third quarter, economists believe growth for the entire year will be a lackluster 1.6 percent, reflecting the weak start to the year.
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The GDP growth rate in the third quarter was the economy's best showing since it expanded at a 5 percent rate in the third quarter of 2014. In the final three months of last year, growth slowed to a 0.9 percent rate, followed by weak gains of 0.8 percent in the first quarter this year and 1.4 percent in the second quarter.
Economists expect growth to remain solid in the current October-December quarter, but at a slightly slower pace of around 2 percent.
Another major contributor was stronger inventory building, which added 0.6 percentage point to growth after trimming it by 1.2 percentage points in the second quarter.
Consumer spending, which accounts for two-thirds of economic activity grew at a solid 2.1 percent rate but slower than the 4.1 percent spending burst in the second quarter.
Economists believe consumers will continue to support growth in the current quarter and into 2017.
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