It’s possible that there is good news ahead for the U.S. and its economic growth. The economy has gathered steam in the third quarter, as fears have been pushed aside and spending has increased. As Sung Won Sohn, an economics professor at California State University in the Channel Islands said, “The probability of a double-dip has diminished quite a bit.”
According to a Reuters survey of economists, the U.S. gross domestic product expanded at a rate of 2.5% annually during the third quarter; this is in contrast to the 1.3% pace that was seen during the April-June quarter.
The economy at the end of 2011 could swing either way, economists are predicting. The slowdown in Europe could create a weaker end to the year, but the upturn in spending in the states and the inventory accumulation by businesses may help for the fourth quarter.
Certainly on the downside, the recovery pace is not strong enough to lower the jobless rate, which has been stuck for almost half a year above 9%