US Economy Grows by 3,5% after Year of Declines

Is the recession ending? The Bureau of Economic Analysis released the first of three readings of overall economic growth during the July to September period, noting the first quarter of positive GDP growth since the second quarter of 2008. Photo by EPA/BG

The United States economy grew at a 3,5% annual rate in the third quarter, ending a string of declines over four quarters that resulted in the most severe slide since the Great Depression, the government announced.

Analysts say the growth was helped by the "cash for clunkers" car scrappage scheme, and the fear is growth will now fall after this ended in August. The US economy was also lifted by President Obama's USD 787 B economic stimulus plan.

The US economy last expanded in the second quarter of 2008, when it grew 2,4%.

The increase in GDP, reported by the government Thursday morning, was slightly better than expectations, CNN commented.

Economists surveyed by Briefing.com had forecast 3,2% growth in gross domestic product, the broadest measure of the nation's economic activity. The economy shrank at a 0,7% rate in the second quarter.

The positive GDP report is considered as one more sign that the economy has likely pulled out of the deep recession that started in December 2007.

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