Economy grew more than estimated during the third quarter

The U.S. economy expanded more during the third quarter than previously estimated, according to The Wall Street Journal. However, the economy still was struggling as it faced weaker exports and sluggish domestic demand.

The economy expanded at a 2.7 percent annualized rate during the third quarter, which is higher than the government's initial estimate of 2 percent and the 1.3 percent reported during the second quarter. Housing especially has fostered the economy's growth during the past six quarters, and demand for previously owned homes hit the highest level in two and a half years in October.

Still, other aspects of the economy weakened. Consumer spending increased 1.4 percent compared with an earlier estimate of 2 percent; spending on equipment and software fell 2.7 percent. In addition, exports grew 1.1 percent during the third quarter compared with 5.3 percent during the second quarter.

"Despite the illusion of robust growth in the third quarter, it looks like activity is expanding in the second half of the year at about the same pace as in the first half," says Stephen Stanley, an economist at Pierpont Securities, Stamford, Conn.

During the first three quarters of 2012, the economy has averaged a 2 percent growth rate.

Date : 12/11/2012