Buoyed by brisker consumer and business spending, The American economy grew at an annualized rate of 2.5% in the third quarter, according to a report released this morning by the U.S. Department of Commerce,
“The acceleration in real GDP in the third quarter primarily reflected accelerations in PCE [personal consumption expenditure] and in nonresidential fixed investment and a smaller decrease in state and local government spending that were partly offset by a larger decrease in private inventory investment,” said the U.S. Department of Commerce Bureau of Economic Analysis in a press release.
There’s been a catch-22 as businesses have held off hiring until they see more consumer demand. However, people aren’t going to buy if they don’t have a job, or have an otherwise uncertain economic future. Those two forces have been locked in stalemate, stymieing the recovery, but maybe this nudge from both quarters will help things along. However, it won’t be until the job market improves that we will see signs of strong economic recovery.
National Income and Product Accounts Gross Domestic Product, 3rd quarter 2011 (advance estimate) [U.S. Department of Commerce]