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WASHINGTON (CBS.MW) - Powered by tax cuts and low interest rates, the U.S. economy expanded at a 7.2 percent annual rate in the third quarter, the fastest growth in more than 19 years, the Commerce Department said Thursday.
The first estimate of real gross domestic product was considerably stronger than the 6 percent consensus forecast.
The growth rate is a testament to the power of monetary and fiscal stimulus to boost final demand. Final sales of domestic product grew 7.8 percent, the best in 25 years.
Real disposable income increased 7.2 percent.
Growth was balanced in the quarter, with strong contributions from consumers and businesses, spending and investment. Government spending and net exports also added to growth.
The only negative forces were inventory accumulation and investments in business structures.
The first estimate of real gross domestic product was considerably stronger than the 6 percent consensus forecast.
The growth rate is a testament to the power of monetary and fiscal stimulus to boost final demand. Final sales of domestic product grew 7.8 percent, the best in 25 years.
Real disposable income increased 7.2 percent.
Growth was balanced in the quarter, with strong contributions from consumers and businesses, spending and investment. Government spending and net exports also added to growth.
The only negative forces were inventory accumulation and investments in business structures.
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8:30am 10/30/03 U.S. WEEKLY INITIAL JOBLESS CLAIMS OFF 5,000 TO 386,000
8:30am 10/30/03 U.S. 4-WEEK AVERAGE JOBLESS CLAIMS OFF 4,750 TO 388,750
8:30am 10/30/03 U.S. Q3 GDP OF 7.2 BEATS EXPECTATION OF 6%
8:30am 10/30/03 U.S. Q3 GDP UP 7.2%, BEST IN 19 YEARS
8:30am 10/30/03 U.S. Q3 EMPLOYMENT COST INDEX +1.0% VS +0.9% FORECAST
8:30am 10/30/03 U.S. 4-WEEK AVERAGE JOBLESS CLAIMS OFF 4,750 TO 388,750
8:30am 10/30/03 U.S. Q3 GDP OF 7.2 BEATS EXPECTATION OF 6%
8:30am 10/30/03 U.S. Q3 GDP UP 7.2%, BEST IN 19 YEARS
8:30am 10/30/03 U.S. Q3 EMPLOYMENT COST INDEX +1.0% VS +0.9% FORECAST
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