Tuesday, December 23, 2014
WASHINGTON (AP) — The U.S. economy grew at a sizzling 5 percent annual rate in the July-September period, the fastest since 2003, fueled by higher consumer spending and business investment.
Last quarter's resurgence in growth provided the latest evidence that the U.S. economy is steadily strengthening and outshining most others around the world. The news helped lift the Dow Jones industrial average above 18,000 for the first time. And it could shape the Federal Reserve's decision on when to raise interest rates from record lows.
In midmorning trading, the Dow was up 80 points to 18,039.
In its report today, the government sharply upgraded third-quarter growth from its previous 3.9 percent estimate. Much of the increase came from consumer spending on health care and business spending on structures and computer software.
The economy has benefited in recent months from sharply lower energy prices. Cheaper fuel has given consumers and businesses more money to spend on other goods and services that drive growth.