GDP Data Confirm Recovery Not Advancing

Business investment and federal government spending also contributed to growth, while international trade and the housing sector were drags on the economy.
Courtesy of UncontainedLiving

The U.S. economy remains stuck in neutral, according to the latest data, continuing a pattern of steady growth that is too slow to bring down joblessness. Until employment recovers it will be tough for the economy to recover from the lengthy recession.

A consistent picture has emerged from a wide range of economic data since the spring: The expansion is solid enough that the nation is not dipping back into recession, yet so feeble that there is little progress in the recovery.

The nation's GDP rose at a 2 percent annual rate in the July-through-September quarter, according to the Commerce Department. That was a slight improvement from the 1.7 percent growth rate in the second quarter and the fifth straight quarter of expansion.

Spending by U.S. consumers, the largest component of GDP, spurred the uptick, rising in the third quarter to a 2.6 percent annual rate, the strongest since the end of 2006. Another major factor in growth was businesses building up their inventories. This more worrisome sign shows that it is unlikely to be repeated in future quarters. Firms may even need to cut back on inventories, detracting from future growth.

Source: Washington Post