Don't miss

Replay


LATEST SHOWS

BUSINESS DAILY

Massive trade bill clears key hurdle in US Senate

Read more

IN THE PAPERS

'Why should the U.S. fight for the Iraqis?'

Read more

IN THE PAPERS

"Inequality takes hold"

Read more

DEBATE

Will Ireland Say "I Do"? Gay Marriage Referendum Challenges Catholic Values (part 1)

Read more

DEBATE

Will Ireland Say "I Do"? Gay Marriage Referendum Challenges Catholic Values (part 2)

Read more

FOCUS

Mother of French terror victim seeks to open minds

Read more

ENCORE!

Aishwarya Rai: An interview with the Queen of Bollywood

Read more

MEDIAWATCH

Ireland on the eve of gay marriage vote

Read more

EYE ON AFRICA

Tensions continue to rise in Bujumbura

Read more

Business

Consumer spending drives boost in US growth

Text by News Wires

Latest update : 2010-10-29

The US economy grew by 2% in the third quarter according to the Commerce Department. Driving the growth was consumer spending, which increased by 2.6%.

AFP - The US economy grew two percent in the third quarter, the Commerce Department said Friday, boosted by a rise in consumer spending.
  
The world's largest economy showed more signs of life in the July-September period, after slowing to an annual rate of 1.7 percent in the second quarter from 3.7 percent in the first.
  
"The increase in real GDP in the third quarter primarily reflected positive contributions from personal consumption expenditures," a statement said.
  
With nearly one in 10 workers without jobs, consumers have tended to keep their wallets shut, creating a vicious circle for the spending that accounts for 70 percent of US gross domestic product.
  
That trend showed signs of easing, as spending increased 2.6 percent in the third quarter, compared with an increase of 2.2 percent in the second.
  
The positive trend was pared back by a 17-percent increase in imports, which directly reduce GDP as cash flows out of the economy.
  
Although the US economy has grown in each of the past four quarters, growth has not been strong enough to bring down high unemployment, stuck for the past two months at 9.6 percent.
  
The growth estimate is subject to revision.

Date created : 2010-10-29

  • ECONOMIC CRISIS

    US economy posts promising 3.5% GDP growth in Q3

    Read more

COMMENT(S)