Economy grew at 2 percent pace during the third quarter

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The U.S. economy grew slightly during the third quarter of this year as gross domestic product (GDP) increased 2 percent, according to The Washington Post.

The third-quarter figure is up compared with the second quarter, when GDP increased 1.3 percent. Although there was growth, it still was too weak to spur significantly more hiring.

Consumer spending increased at an annual rate of 2 percent during the third quarter, which was up from 1.5 percent during the second quarter.

A significant driver of growth was an increase in defense spending. Business spending on equipment and software remained flat during the third quarter; this is the first quarter since the recession that it didn't increase.

Growth was slowed by a drop in exports, as well as the drought that affected the Midwest during the summer, cutting agriculture stockpiles and reducing the economy's annual growth rate by nearly half a point.

Some analysts believe the economy will remain sluggish during the first half of 2013 but will start to pick up during the second half of the year.

10/30/2012

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