Consumer spending drives stronger US growth

WASHINGTON, Oct 27 (AFP): The US economy grew at a much faster rate of 2.5 per cent in the third quarter, boosted by stronger consumer spending, the Commerce Department reported Thursday. The rate of growth nearly doubled from the second quarter, as Americans spent more on everything from computers to services. The report will ease fears that the United States is headed for another recession, even if the Commerce Department's estimate is subject to revision. Describing the report as "encouraging," Peter Newland of Barclays Capital noted "the bulk of the rebound... was centered in personal consumption, which was up 2.4 per cent."