Economy grew at 2.7% in third quarter

6:23 AM, Nov 29, 2012   |    comments
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The nation's economy grew at a 2.7 percent annual rate in the third quarter, faster than originally estimated, because of greater strength in exports and a surge in housing-related investment, the government reported.

The report is revised from the government's initial estimate of 2.0 percent growth, the Bureau of Economic Analysis reported. In the second quarter, GDP grew at a 1.3 percent rate.

The change in gross domestic product came in slightly lower than the 2.8 percent annual rate economists had predicted.

The boost from the initial estimate published last month suggests that the housing recovery is taking root, and the European financial crisis is having less impact on exports than initially feared. But consumers are spending less than the government first estimated, as third-quarter growth in consumer spending was revised down to 1.4% from an initial estimate of 2 percent.

Housing investment climbed at an annual pace of 14.2 percent, the Bureau of Economic Analysis said. The gain was the second-biggest quarterly jump in spending for new homes and remodeling since before the housing bust.

Exports of goods and services grew 1.1 percent in the third quarter. The government previously estimated they fell 1.6 percent. In the second quarter, they grew 5.3 percent.

By Tim Mullaney

USA Today

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