The Commerce Department released a report on the economy that will come as good news to Americans keen on their economy. In the 3rd quarter of July to September, there was an annualized growth rate of 2.5%. This is as opposed to an estimated rate of 2%.

The growth was attributed to higher spending by American consumers, especially on items such as cars; as well as a rise in the volume of exports.

In the 2nd quarter, a growth of 1.7% was registered and so the latest figures show a considerable improvement. The US Federal Reserve had said at the beginning of this month that $600 billion would be injected into the economy so as to accelerate the recovery of the economy.

The chief US economist at IHS Global Insight, Nigel Gault expressed surprise at the fact that business spending on software had significantly increased as well as the lack of upward revision of inventories which had been widely anticipated. He also said that consumer spending had been much better than had been estimated.

Describing the growth as good news, Mr. Gault went on to say that he hoped the same positive outcome would also reflect in the period of October-December.
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