US economy expands slowly; GDP rises 2.2% in Q3
Washington: Indicating a slow recovery, the US economy grew 2.2 per cent in the third quarter of 2009, much less than projected.
Coming out of the worst ever recession in nearly 80 years, the economy was expected to scale up by 2.8 per cent in the three months ended September.
"Real gross domestic product -- the output of goods and services produced by labour and property located in the US -- increased at an annual rate of 2.2 per cent in the third quarter of 2009," the US Bureau of Economic Analysis (BEA) said today.
According to the BEA, the third-quarter growth was mainly on account of increased consumer spending, higher government expenditure and improved residential fixed investments.
The national economy ravaged by the global financial turmoil which had shrunk 0.7 per cent in the second quarter, has witnessed revival signs in recent months.
However, corporate spending was less in the third quarter as companies continued to embark on cost saving measures.
In the first three months of this year, the GDP had contracted 6.4 per cent, following a fall of 5.4 per cent in the 2008 December quarter.
To prop up the country's sagging economy, the Federal government had unveiled unprecedented steps including USD 700 billion stimulus package. The US is still continuing with near-zero rate regime to ease the credit conditions.
In terms of current-dollar value, the American GDP is worth USD 14.24 trillion.
"Current-dollar GDP -- the market value of the nation's output of goods and services -- increased 2.6 per cent, or USD 90.9 billion, in the third quarter to a level of USD 14,242.1 billion," the BEA noted.
The American labour market is picking up, after being battered by massive layoffs earlier this year. The unemployment rate slipped to ten per cent last month from a 26-year high of 10.2 per cent in October.
Earlier in the day, official data showed that the British economy shrank 0.2 per cent in the third quarter, as against the projection of 0.3 per cent decline.