Car Sales Help GNP Post 1.8% Gain in Quarter
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WASHINGTON — The U.S. economy grew at a stronger-than-expected 1.8% rate in the July-September quarter, boosted by consumer spending on cars and other items, the government reported today.
The Bush Administration said the report “contradicts those who believe we are in a recession or about to enter one,” but private analysts weren’t so sure.
The Commerce Department said the growth in the gross national product--the nation’s total output of goods and services--improved over a barely perceptible 0.4% annual rate during the second quarter.
The figures indicate the economy evaded the beginning of a recession. But that isn’t certain because the GNP report will be revised twice--in November and again in December--as more information becomes available.
Much of the improvement in the economy resulted from a 3.6% increase in consumer spending. Purchases of autos rose $3.4 billion, compared to a $6.1-billion decline in the second quarter, the Commerce Department said.
In advance of the report, a consensus of economists had expected a growth rate of just 0.8% from July through September.
Many analysts believe the economy has weakened in recent weeks and is slipping into a recession.
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