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GDP grew 3.5 percent in third quarter, imports and exports expand at double-digit rate
The U.S. economy grew 3.5 percent in the third quarter, the government announced Monday, a long-awaited signal that the worst recession in decades is over.
The expansion, the Commerce Department reported in its preliminary report on the quarter ending Sept. 30, was the first growth in GDP since the spring of 2008.
Economists said the growth was fueled by government spending and support, including stimulus plans such as the “cash for clunkers” automobile sales program. The Commerce Department said consumer spending rose 22.3 percent in the quarter, which the department said was largely because of car sales.
U.S. trade also provided a boost. Imports of goods grew 20 percent after falling 16.5 percent in the previous quarter while exports of goods expanded 21.4 percent compared with a 6.3 percent decline in the second quarter.
The pullback in inventories that has hit transportation carriers also slowed down. The government said private business inventories declined $130.8 billion in the quarter, sharply slower than the $160.2 billion contraction in the second quarter.
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Heard and Noted
Remember that business-labor alliance over transportation issues? Well, forget about it. http://t.co/Vi1003rf
Feb 8, 2012 10:00PM GMT
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Yeah I do agree that US as a whole is recovering form the recent recession but not totally. There are still many states that are suffering form the impact of that recession. If you're wondering where economic recovery is the slowest, or the fastest, it's slowest in Detroit and New York. According to a recent survey by Moody's Economy, using Bureau of Labor Statistic data, pinpointed the hotbeds of recovery and areas that were depressed. The manufacturing heavy areas, especially Detroit and Flint, MI, were the worst beset by unemployment, and New York City has a financial sector in shambles. Austin, Texas has the lowest unemployment in large metro areas, with Fayetteville, Arkansas and Boulder, Colorado right behind them. Some areas, especially those with a large manufacturing base, aren't thought by some to be able to make a full economic recovery – and are in the direct need of debt relief.