American economy expands at modest 2 percent pace

October 27, 2012 • Business

This Oct. 25, 2012 photo shows appliances on display at Orville’s Home Appliances store in Amherst, N.Y. The government’s snapshot Friday, Oct. 26, 2012, of the U.S. economy’s growth will be its last before Americans choose a president in 11 days. It probably won’t sway many undecided voters. The first of three estimates of growth for the July-September quarter will likely sketch a picture that’s been familiar all year: The economy is growing at a tepid rate, slowed by high unemployment, corporate anxiety over an unresolved budget crisis and a global economic slowdown. The government’s report covers gross domestic product. GDP measures the nation’s total output of goods and services — from restaurant meals and haircuts to airplanes, appliances and highways. (AP Photo/David Duprey)

WASHINGTON (AP) — The latest snapshot of economic growth shows the U.S. recovery remains tepid.

Growth in the July-September quarter climbed slightly but was still too weak to stir significantly more hiring. The pace of expansion rose to a 2 percent annual rate from 1.3 percent in the April-June quarter, led by more consumer and government spending.

Voters who are still undecided about the presidential election aren’t likely to be swayed by Friday’s mixed report from the Commerce Department.

“For the average American, I don’t think changes in quarterly GDP” make a big difference in their perception of the economy, said Andrew Kohut, president of the Pew Research Center. “It’s certainly good for the president that the number is not bad because that would resonate.”

With 11 days until the election, the economy is being kept afloat by a revitalized consumer and the early stages of a housing recovery. But more than three years after the Login to read more

Related Posts

Leave a Reply

« »