US Economy grew by 2.5 in the third quarter

The US economy, biggest in the world, grew by 2.5% in the third quarter ending September for the current financial year 2011. The growth rate was the fastest in last year and was mainly driven by higher spending by the Americans. The GDP growth rate of 2.5% was much higher compared to just 1.3% GDP growth rate in the previous quarter.

The higher than expected GDP growth was driven by household expenses which were increased by more than expected 2.4% in the last quarter. The household expenses are the biggest part of US economy and sufficient enough to push the overall GDP growth rate. Though the GDP growth rate was much better than expected and promising for the world-s biggest economy, the US economic growth is still fragile with very high unemployment rate of nearly 9.1%. Stock markets jumped following the news as it reduces any possibility of double dip recession in US in spite of global slowdown.

Previous Quarter Growth: US economy grew lower than expected during last quarter