Business Growth in 3rd Quarter Is Best in Two Decades
By THE ASSOCIATED PRESS
Filed at 8:49 a.m. ET
WASHINGTON (AP) -- The U.S. economy, propelled by tax cuts and low interest rates, roared ahead at an 8.2 percent annual rate in the third quarter, the best showing in nearly 20 years, while Americans' incomes and spending both showed healthy gains in November.
The government reports Tuesday on the gross domestic product, the country's broadest measure of economic health, and personal incomes and spending provided further evidence that the economy was convincingly shaking off a prolonged period of lethargy and beginning to fire on all cylinders.
The Commerce Department report that the GDP grew at an 8.2 percent rate in the third quarter, propelled by a surge in consumer spending, was identical to the preliminary estimate made a month ago and represented the strongest growth since an 8.4 percent rate of increase in the fourth quarter of 1983.
In a separate report, the government said consumers were remaining active in the current quarter with consumer spending rising by 0.4 percent in November, the best showing since August, and incomes, helped by rising employment levels, posted an increase of 0.5 percent last month, the best gain since May. |
