U.S. GDP rises 2 percent in 3Q

U.S. GDP rises 2 percent in 3Q

2010-10-29 22:10:20 GMT+7 (ICT)

WASHINGTON, D.C. (BNO NEWS) -- The U.S. gross domestic product (GDP) rose at an annual rate of 2 percent in the year's third quarter for the fifth consecutive time, the U.S. Commerce Department said Friday.

The report was released by the department’s Bureau of Economic Analysis, and even though the economy's growth is a positive note, most economists believe it will not be able to decrease the U.S. unemployment rate of 9.6 percent.

U.S. Commerce Secretary Gary Locke said business spending on equipment and software has grown 17.8 percent over the past year, and foreign demand for U.S. products also "remained strong," with U.S. exports increasing 12.2 percent over the past four quarters.

"Consumer spending is another encouraging sign in today’s data, representing the fifth consecutive increase in consumer spending, which has been accelerating over the past three quarters," Locke said.

Spending increased 2.6 percent in the third quarter, which is .4 percent higher than the previous quarter.

Locke underlined Obama administration's initiatives such as the recently passed Small Business Jobs Act helping the economic growth. The Commerce Secretary also mentioned the importance of the improvement in the business investment climate and credit markets, as well as support for economic growth.

The year's first quarter showed a 3.7 percent GDP increase, which was followed by a 1.6 percent in the second.

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