WASHINGTON (AP) - The economy grew slightly faster last summer
as Americans spent a little more freely. Yet it remains too weak to
reduce high unemployment just as Democrats face deep losses in
Tuesday's elections.
The Commerce Department said Friday that the economy expanded at
a 2 percent annual rate in the July-September quarter. It marked an
improvement from the feeble 1.7 percent growth in the April-June
quarter.
Consumers helped boost last quarter's economic growth with 2.6
percent growth in spending. That was better than the second
quarter's 2.2 percent growth rate and marked the biggest quarterly
increase since a 4.1 percent gain at the end of 2006 before the
recession hit.
A stock-market rebound made people feel better about spending.
Bargains, on everything from cars to home furnishings, also drew
them out. Consumer spending accounts for roughly 70 percent of
national economic activity, and thus plays a major role in
determining the vigor of the economic rebound.
But to have any impact on the 9.6 percent unemployment rate,
consumers need to spend even more and the economy would need to
rack up growth of 5 percent for a full year.