WASHINGTON – The U.S. economy grew at a sizzling 5 percent annual rate in the July-September period, the fastest in more than a decade, on the strength of higher consumer spending and business investment.
The resurgence in growth last quarter provided the latest evidence that the U.S. economy steadily is strengthening and outshining most others around the world.
In its report Tuesday, the Commerce Department sharply revised up its estimate of third-quarter growth from a previous figure of 3.9 percent. Much of the increase came from consumer spending on health care and business spending on structures and computer software.
It was the fastest quarterly growth since the summer of 2003, and it followed a 4.6 percent annual growth rate in the April-June quarter. The government separately reported Tuesday that consumer spending rose at the fastest pace in three months in November, while income posted the best gain in five months.
Most analysts think the economy is slowing to an annual rate of around 2.5 percent in the current October-December quarter. And they foresee growth around 3 percent in 2015. That still would be the strongest expansion since the economy grew 3.3 percent in 2005.
