New York, Dec 23 (DPA) US stocks were up Tuesday after the government reported that the economy grew in the third quarter, although at a slower-than-expected rate.
The Commerce Department said the US economy grew at 2.2 percent in the third quarter of 2009. While the rise in Gross Domestic Product (GDP) was weaker than earlier estimates, it was still the first positive growth period after the year-long recession that has plagued the world’s largest economy.
In the final of its three estimates, the Commerce Department showed the annualised GDP rate was slower than the revised 2.8 percent gain in the July-to-September period that it had reported last month. Its initial estimate in October predicted a 3.5 percent jump.
The quarter saw a 2.8 percent increase in consumer spending, which accounts for two-thirds of economic output, after falling 0.9 percent in the previous quarter, the Commerce Department said.
The economy shrank 0.7 percent in the previous quarter and a massive 6.4 percent in the first three months of the year. Unemployment remains at a 26-year high, despite dipping in November to 10 percent from a high of 10.2 in October.
Economists said they remain optimistic about fourth quarter growth, with predictions of 3.5 percent to 4.5 percent growth, Bloomberg financial news reported.
The Dow Jones Industrial Average added 50.79 points, or 0.49 percent, to 10,464.93. The Standard and Poor’s 500 Index gained 3.97 points, or 0.36 percent, to 1,118.02, while the Nasdaq Composite Index picked up 15.01 points, or 0.67 percent, to 2,252.67.
The dollar continued to rise after reaching a three-month high last week, climbing to 70.14 euro cents from 70 euro cents Monday. Against the yen, the dollar reached 91.80 from 91.16 yen Monday.
