US economy grew 2 per cent in Q3
27 Oct 2012
US economic growth perked up at a modest pace in the summer, according to a new report which reflected both the durability of the US economic recovery and its sluggishness.
The commerce department reported yesterday that US gross domestic product grew by 2 per cent from July through September, up from the 1.3 per cent rate clocked in the second quarter and roughly in line with analysts' forecasts. The jump was fuelled by gains in consumer spending, housing investment and an increase in government spending but decline in exports and falling investment in commercial buildings acted as drags.
Analysts say with the election season under way, the latest numbers held something for both sides to bolster their arguments with. The US economy had now shown growth for 13 straight quarters, over three years in a row, even as it has had to counter challenges at home and abroad, a fact the president pointed out yesterday.
''While we have more work to do, today's GDP growth report, showing the 13th straight quarter of growth, is more evidence that our economy continues to come back from the worst recession since the Great Depression under President Obama's leadership,'' Obama campaign spokesman Adam Fletcher said in a statement.
Fletcher added, ''Businesses have added 5.2 million jobs over the past two and a half years, the unemployment rate is now at its lowest levels since January 2009, and the president has a concrete, detailed plan to continue moving America forward, get folks back to work and strengthen the middle class for the future.''
But the growth rate has for much of the period been slow, roughly in line with the long-term growth potential of the US economy. In other words, it was not enough to put the millions of jobless Americans back to work with any speed, as Republican presidential nominee Mitt Romney and his allies emphasised.
