GDP Grows 2% in Q3

Growth fits economists' predictions
By Newser Editors and Wire Services
Posted Oct 29, 2010 8:54 AM CDT
In this Sept. 30, 2010 file photo, traders gather at a post on the floor of the New York Stock Exchange, in New York.   (AP Photo/ Richard Drew)
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(Newser) – The economy grew slightly faster over the summer as Americans spent a little more freely: The GDP grew at a 2% rate during the third quarter, in line with what economists had forecast. It marks a slight improvement over last quarter, when the GDP grew at a 1.7% rate. Consumers helped boost last quarter's economic growth with 2.6% growth in spending, the biggest quarterly increase since 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. But to have any impact on the 9.6% unemployment rate, consumers need to spend even more, and the economy would need to rack up growth of 5% for a full year. (Read more Wall Street stories.)

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