US economy grew at 2.9 per cent rate in third quarter
WASHINGTON — The U.S. economy grew at a 2.9 per cent rate in the July-September quarter, the strongest pace in two years, as the battered export sector rebounded and businesses finally began restocking their shelves at a faster clip.
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 Friday. Economists said that the better-than-expected GDP reading put the Federal Reserve on track to boost interest rates next month.
“This report points to an economy that may be gaining traction– at last,” said Quincy Krosby, market strategist at Prudential Financial.
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.