Economic growth in the US picked up speed in the third quarter, but the rate of acceleration was still less than expected. Gross domestic product expanded at an annualised rate of 3.1pc in the three months to September, the Commerce Department said this afternoon. This was more than double the 1.3pc recorded in the second quarter but was short of the 3.6pc expected
The stronger growth in the quarter was driven by increased activity in the consumer sector, particularly demand for cars as automakers extended their zero percent financing offers. Consumer spending rose 4.2pc in the third quarter, up from the 1.8pc in the second quarter, led by a 22.7pc increase in spending on durable goods such as automobiles.
However, spending activity may weaken over the coming months again as consumers hold off on big purchases until a clearer picture of the economic recovery emerges "We know car sales have come off the boil in September and October, as it seems did consumer spending more generally, so GDP growth in Q4 is likely to be considerably weaker than in Q3," Michael Crowley, economist at Bank of Ireland Treasury, said today //www.fxcentre.com