WASHINGTON (AFP) – US growth surged to its highest level in 11 years in the third quarter, according to an updated government estimate released Tuesday.
Gross domestic product (GDP) increased five per cent between July and September in the Commerce Department’s third estimate for the period, up from the 3.9 per cent previously estimated.
Analysts had expected growth of 4.3 per cent.
Tuesday’s figures built on the momentum from the second quarter, when growth came in at 4.6 per cent.
The US economy contracted 2.1 per cent in the first quarter of 2014, a weak result mainly attributed to the abnormally cold winter, but has since recovered strongly.
Spending for consumption rose 3.2 per cent, the biggest jump since the end of 2013. Consumption of goods rose 4.7 per cent, while spending on services gained 2.5 per cent.
The updated figures come on the heels of a strong November jobs report, which showed the US economy adding 321,000 jobs.
Federal Reserve Chair Janet Yellen last week said the US economy is improving steadily, but said the labour market still needs to strengthen and signalled that interest rates would remain low for months.