Economy Grows by Most in a Decade on U.S. Consumer-Spending Gain - Bloomberg
The world’s largest economy surged in the third quarter, expanding at the fastest pace in more than a decade, as U.S. consumers and businesses spent more than previously estimated.Gross domestic product grew at a 5 percent annual rate from July through September, the biggest advance since the third quarter of 2003, and up from a previously estimated 3.9 percent, revised figures from the Commerce Department showed today in Washington. The median forecast of 75 economists surveyed by Bloomberg projected a 4.3 percent increase.
Consumer spending is poised to charge into 2015 as more employment and lower gasoline prices boost household confidence and buying power, one reason why the Federal Reserve will probably raise interest rates next year. Other aspects of GDP, including inventories, trade and government spending, are unlikely to maintain the strength seen last quarter, indicating the pace of growth will moderate at the end of the year.
“After five years of weak growth, the economy is finally coming out of rehab,” Ethan Harris, co-head of global economics research at Bank of America Corp. in New York, said in a research note before the report. “Look for the Fed to change policy in a way that only slowly and modestly tightens financial conditions.”
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Oh wait... this can't be true if it's good for Obama.