The U.S. economy grew at its fastest pace
in over a decade during the third quarter of this year,…. boosted by strong consumer
spending and business investment. And with strengthening labor conditions and
lower crude prices,… analysts predict that the U.S. economy will gain sufficient momentum
in the coming year. Kim Ji-yeon tells us more.
The world′s largest economy grew at an annual rate of five percent during the July to September
period. It′s the fastest rate of expansion since
2003 and higher than the goverment′s earlier estimate of three-point-nine percent.
Economists point to strong consumption, especially on health care services.
Consumer spending jumped three-point-two percent… its biggest jump this year.
“Two thirds of the economy is related to consumption. History suggests that business investment
lags consumption growth. So if the overall economy is starting to accelerate, 2015 could
also be a fairly strong business climate.” The data boosted stocks on Wall Street,…
lifting the Dow Jones above 18-thousand for the first time ever.
The S&P 500 also closed at a record high. Growth projections in the fourth quarter are
expected to record an annual rate of around two-and-a-half percent… and three percent
next year… putting weight that the Federal Reserve will stay on course and starts raising
interest rates by mid-2015. Boosted by the strengthening labor market
and falling oil prices… consumer outlays are expected to help cushion the U.S. economy
from uncertainties in China and the eurozone… and a recession in Japan.
Kim Ji-yeon, Arirang News.