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.