ECONOMY
US economic growth rate quickens
Baku, October 29 (AZERTAC). The US economy grew at an annualised rate of 2% in the July-to-September period, an acceleration on the previous quarter, official figures have shown.
The expansion came despite continuing high unemployment and weakness in the housing market.
The 2% figure is an improvement on the upwardly revised 1.7% increase between April and June, but less than the 3.7% growth recorded from January to March.
The Federal Reserve suggested last week it would do more to boost the economy.
To do this, the Fed - the US central bank - is expected to announce next month that it will resume quantitative easing - injecting fresh money into the economy through the purchase of government bonds.
Compared with the preceding quarter, the US economy grew by 0.5% between July and September.
The economy is continuing to experience a slow recovery by historical standards, with the unemployment rate at 9.6% and Americans increasingly nervous about the future.
This is expected to manifest itself in big losses for President Barack Obama`s Democratic Party in Tuesday`s congressional elections, which are being seen as a vote on his economic performance.
`Disappointing`
The Commerce Department`s figures showed that businesses building up their inventories - stocks of goods and materials - contributed most of the US economic expansion during the third quarter.
The growth in business inventories made up more than two-thirds of the 2% annualised expansion in the economy.
However, consumer spending also increased, despite continuing high US unemployment.
Consumer spending rose 2.6% during the third quarter, up from 2.2% in the second.
"[Economic] growth is still positive, but a bit disappointing," said Scott Brown, chief economist at Raymond James & Associates.
"It`s not where we would like it to be at this point of the recovery."