US economy rebounds with 3.5 per cent growth in Q3

The world's largest economy bounced back in the third quarter registering a GDP growth rate of 3.5 per cent, led by increased consumer spending on durable items like cars and refrigerators, according to data released by the US Commerce Department.

The rebound with the strongest expansion in two years, comes after four consecutive contractions in the previous quarters, signals the nation's emergence from the worst economic recession since World War II, joining Japan, Germany and France that have recently come out of the downturn.

US president Barack Obama

GDP, which is a broad measure of total goods and services produced in the country, grew by 3.5 per cent in the September quarter spurred by government programmes, and support from the $787 billion stimulus package announced in February this year.

The growth follows a decline of 0.7 per cent in the second quarter and the 6.4 per cent contraction during the first quarter, the steepest since 1982.

US president Barack Obama said that it is ''welcome news'', adding that the country was still a long way from recovering from the deepest downturn since the Great Depression.

''The figures are an affirmation that this recession is abating and showed the steps we've taken have made a difference, but I also know that we've got a long way to go to fully restore our economy," Obama said.