US economy grew robust 3.9pc in third quarter

WASHINGTON, Nov 26 (AFP): Growth in the US economy in the third quarter was far stronger than thought, official data showed Tuesday, further distancing the United States from the ailing eurozone and Japan.

The world's largest economy clocked a 3.9 per cent annual growth rate in the July-September period, the Commerce Department said, revising its initial estimate of 3.5 per cent last month.

The number was well above expectations. Economists had predicted a downward revision in the second official estimate for the quarter, to 3.2 per cent.

The momentum came on the heels of a 4.6 per cent expansion in gross domestic product in the second quarter as the economy rebounded from a 2.1 per cent contraction in the first three months of the year largely reflecting severe winter weather.

The back-to-back quarterly growth means "the US has undergone its strongest growth phase for 11 years," said Chris Williamson, chief economist at Markit.