Cleaning & Restoration Breaking News

Consumers Fuel Faster Economic Growth

WASHINGTON (Reuters) - Robust consumer spending on cars, furniture and food helped the U.S. economy advance faster than first thought in the third quarter, a government report showed, while underlying inflation was the tamest in decades.

The Commerce Department said on Tuesday gross domestic product, the measure of all goods and services produced within U.S. borders, grew at a 3.9 percent annual pace in the three months from July through September, up from 3.7 percent estimated a month ago.

This was the second of three government estimates for quarterly GDP and beat Wall Street economists' predictions that the third-quarter advance would be unchanged from the first snapshot at 3.7 percent.

The gain marked the sixth successive quarter GDP has expanded at a rate exceeding 3 percent, implying healthy and sustainable growth.

Consumers ratcheted up spending at a 5.1 percent annual pace, more than three times the 1.6 percent rate in the second quarter and the strongest since a 7 percent surge in the fourth quarter of 2001. Consumer spending accounts for more than two-thirds of the $11-trillion U.S. economy.

Analysts said the GDP report was a reassuring sign that growth was on a safe track and added that it gave the Federal Reserve leeway to keep raising interest rates without fear of choking off growth.

Inflation data within the GDP report suggested the Fed has little to fear from price pressures.

A key price gauge favored by Fed Chairman Alan Greenspan -- the personal consumption expenditure index excluding food and energy costs -- rose at a mild 0.7 percent rate in the third quarter, the smallest pickup since a 0.5 percent gain in the fourth quarter of 1962.

U.S. central bank policy-makers next meet Dec. 14 to mull interest-rate strategy. They have lifted short-term borrowing costs at each of their last four gatherings and many economists expect another increase from a still-low 2 percent federal funds rate to come in December.

Did you enjoy this article? Click here to subscribe to i Cleaning Specialist Magazine.

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

The 2014 Experience Conference and Exhibition

A look in photos at the 2014 Experience Conference and Exhibition, which was held from April 24-26 at the Embassy Suites Convention Center and Spa in Frisco, Texas.

Podcasts

Yes, it's only February now - several weeks or months before the thaw depending on where you live - and hopefully this winter has been a profitable one for your business during the historical slow season. But now's also the time to start planning for the busy season - spring - so that you can hit the ground running. In this episode of The Hitman Advertising Show, John Braun shares tips and tricks on how to make this spring your most profitable yet.
More Podcasts

ICS Cleaning Specialist Magazine

CoverImage

2015 Jan/Feb

The Jan/Feb ICS issue features content on cleaning services during the winter time, commercial cleaning, rug cleaning, new with rugs, marketing for restoration and new products.

Table Of Contents Subscribe

Janitorial Work

In addition to residential and commercial carpet cleaning, do you do any janitorial work on the side?
View Results Poll Archive

THE ICS STORE

FinalCover.gif
The Carpet Cleaner's Book of Unlimited Success! (ebook)

Don’t worry about the recession or about your competition.  Now you can be the owner of over 400 ways for carpet cleaning professionals to make more money and get more jobs!

More Products

ICS DIRECTORY AND BUYING GUIDE

Director_Buyer.jpgThe premier resource and reference guide for the cleaning and restoration industries.

Click here to view

STAY CONNECTED

facebook_40.png twitter_40px.png youtube_40px.png

TRUCKMOUNT EQUIPMENT AND ACCESSORIES GUIDE

Truckmount.jpgEquipment listings and specifications from the leading industry manufacturers.

Click here to view