The U.S. economy grew at a faster 2.7 per cent annual rate from July through September, although the strength may fade in the final months of the year.
The Commerce Department said growth in the third quarter was much better than the 2 per cent rate estimated a month ago and more than twice the 1.3 per cent rate logged in the April-June quarter. The two biggest factors in the upward revision were larger gains in business stockpiles and a boost in export sales. That offset weaker consumer spending. Economists believe growth is slowing to a rate below 2 per cent in the current October-December quarter because of disruptions from Superstorm Sandy and worries about sharp tax increases.