US economy grew two percent in third quarter

WASHINGTON - The US economy improved slightly in the third quarter of this year, growing at an annual growth rate of two percent, according to an initial estimate by the Commerce Deparment Friday.

The world’s largest economy grew 1.7 percent in the second quarter of 2010 as it continues to struggle to pull out of last year’s deep recession.

The pickup in activity was partly attributed to the sharpest gain in consumer spending since the economy began growing again in June.

Spending by consumers, which accounts for about two-thirds of US economic output, grew 2.6 percent in the July-September period, compared to a growth rate of 2.2 percent in the second quarter.

The quarterly growth rate matched expectations by economists, but is unlikely to be enough to make a major dent in the US unemployment rate, which has remained stubbornly high at 9.6 per cent in recent months.