U.S. economy grows at 5% in Q3, according to revised Commerce Department report
The U.S. economy grew at a 5 percent annual rate in the third quarter of this year, according to a revised Commerce Department report. The high growth rate is the fastest growth rate since Q3 of 2003. The report also revised the growth rate for the second quarter to 4.6 percent.
“The acceleration in the percent change in real GDP reflected a downturn in imports, an upturn in federal government spending, and an acceleration in PCE that were partly offset by a downturn in private inventory investment and decelerations in exports, in state and local government spending, in residential fixed investment, and in nonresidential fixed investment,” the revised report said.
The report comes too late for Democrats to run for reelection based on the economy, and the takeover of the Senate by Republicans means a push for the kinds of austerity measures pushed by European leaders.
But the revised numbers sent U.S. stocks higher in early Tuesday trading, with the Dow reaching 18,000 for the first time. By 10am ET, the Dow stood near 18,040, with the NASDAQ trading at 4,783, up nearly 80 points. The all-time intra-day high for the NASDAQ was 5,132.52 on March 10, 2000.