U.S. economy grew 2.5 percent during the third quarter

The U.S. economy grew at a faster pace during the third quarter as gross domestic product (GDP) increased 2.5 percent, which is significantly better than the 0.9 percent growth rate during the first half of the year, according to The Washington Post.

The third quarter figure also is an improvement compared with the second quarter, when GDP increased 1 percent. The growth demonstrates the economy remained steady amid challenges such as the U.S.' debt downgrade and fears about economic collapse in Europe.

Consumer spending increased 2.4 percent during the third quarter, which is better than analysts had forecast. Business investment was strong as spending on equipment and software increased at a rate of 17.4 percent, and spending on structures such as office buildings and factories increased at a rate of 13.3 percent.

Government purchases fell at a 1.3 percent annual rate, once again driven by budget cuts at state and local levels.

Date : 10/31/2011