Don't miss

Replay


LATEST SHOWS

EYE ON AFRICA

Mashujaa day: Kenyatta and Odinga call for peace before election rerun

Read more

THE INTERVIEW

Kurdish referendum a ‘colossal mistake’, says son of late president Talabani

Read more

MEDIAWATCH

The new 30s club: NZ's Jacinda Ardern joins list of maverick leaders

Read more

THE WORLD THIS WEEK

Raqqa, Kirkuk, Xi Jinping

Read more

REPORTERS

The Dictator's Games: A rare look inside Turkmenistan

Read more

#TECH 24

Teaching maths with holograms

Read more

DOWN TO EARTH

Is China exporting its pollution?

Read more

#THE 51%

Are female empowerment adverts actually good for the cause?

Read more

FOCUS

The mixed legacy of 'Abenomics' in Japan

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)