We use cookies to improve site performance and enhance your user experience. If you'd like to disable cookies on this device, please see our cookie management page.
If you close this message or continue to use this site, you consent to our use of cookies on this devise in accordance with our cookie policy, unless you disable them.

Close
In association with

Home > Investments > Economic Indicators

By Eleanor Lawrie | Published Oct 26, 2012

US economy grows by 2% on consumer spending boost

The US economy grew a better-than-expected 2 per cent on the back of consumer and government spending between May and June.

The figures, released by the US commerce department, were a big improvement on the 1.3 per cent growth experienced in the second quarter and higher than the 1.8 per cent that was widely predicted.

The news backed president Obama’s claim that the economy is accelerating its recovery, but were still not high enough to bring down the unemployment rate.

Consumer spending rose 0.5 per cent to 2 per cent, and government spending soared by 9.3 per cent. However, exports fell 1.6 per cent.

Other US data was positive, with housing data picking up and helping boost consumer sentiment. This poll was the last measure of the American economy before the election in less than two weeks’ time.

visible-status-Standard story-url-IA pxx US growth 261012.xml

COMMENT AND REACTION
Most Popular
More on FTAdviser
FTA jobs