Economy expanded at 2.8 percent pace during the third quarter

The U.S. economy expanded during the third quarter as gross domestic product (GDP) increased 2.8 percent, which was the fastest pace in a year and significantly stronger than analysts expected, according to The New York Times.

The third-quarter figure is up compared with the second quarter, when GDP increased 2.5 percent. The economy grew as consumers spent more; however, overall spending weakened from the second quarter because service spending essentially was flat.

Spending on home construction grew 14.6 percent. The federal government cut spending by 1.7 percent, and state and local governments increased spending by 1.5 percent.

Economists believe growth could improve by about 2.4 percent during the fourth quarters. However, the full effects of the government shutdown may remain to be seen.

Date : 11/7/2013