Gross Domestic Product Grew At A Tepid 2% During Q3
Washington, D.C., United States (AHN) – Real gross domestic product (GDP) grew at an annual rate of 2 percent during the third quarter of 2010, according to the first estimate released Friday by the U.S. Commerce Department’s Bureau of Economic Analysis.
This compared to private sector expectations of 2.1 percent, BEA officials said.
Economic growth so far this year has averaged a moderate 2.8 percent.
“Today’s data show that the economy grew for the fifth consecutive quarter and the recovery continues with strong business investment, U.S. exports and consumer spending,” U.S. Commerce Secretary Gary Locke said. “Business spending on equipment and software has grown 17.8 percent over the past year, and foreign demand for U.S. products also remained strong, with U.S. exports increasing 12.2 percent over the past four quarters. Consumer spending is another encouraging sign in today’s data, representing the fifth consecutive increase in consumer spending, which has been accelerating over the past three quarters.
“Initiatives by President Obama and this administration, like the recently passed Small Business Jobs Act, along with improvement in the business investment climate and credit markets, support economic growth likely to continue into the fourth quarter and 2011. Our commitment to strengthening America’s economy is steadfast and our mission will not be complete until more Americans can find jobs that provide them with a sense of security and hope for the future,” Locke added.
Growth in business inventories accounted for about two-thirds of the growth although consumer spending also rose despite continued high unemployment.
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