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US Economy Grows 3.5%

Published 10/30/2014, 08:49 AM
Updated 10/30/2014, 09:01 AM
US Economy Grows 3.5%

By Meagan Clark - The U.S. economy expanded by an annualized 3.5 percent in the July-to-September period, according to an advance estimate released Thursday by the Commerce Department. Consensus analyst estimates forecast only a 3 percent rise.

Stronger consumer spending, business investment, exports and government spending fueled the growth in gross domestic product. Imports, which subtract from GDP, decreased.

U.S. economic activity expanded at a 4.6 percent annualized rate in the second quarter on stronger consumer spending and business inventory spending. GDP fell 2.1 percent in the first quarter as a harsh winter slowed spending.

"Looking ahead to Q4, we see a similar rate of GDP growth or a touch lower," Goldman Sachs analysts wrote in a note before the GDP release.

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