Economic Growth Revised Down

The third quarter showed faster growth than the 1.3 percent rate for the second quarter, and has allayed fears that the nation was headed toward another recession.

The U.S. economy grew at a sluggish annual rate of 1.8 percent from July through September, down from earlier estimates.

The new data threw some cold water on hopes that the economic recovery had picked up significant steam in the second half of the year. The initial estimate of third-quarter growth, released in October, was 2.5 percent, but the Commerce Department's Bureau of Economic Analysis has revised it down twice since then.

The final figure came in somewhat below the 2 percent level that most economists had expected. Fourth-quarter data will be released early next year.

Increased consumer spending helped fuel the improvement in the third quarter, but budget cutting by state and local governments remained a drag on growth.

- Courtesy of LA Times