WASHINGTON — The U.S. economy grew at a 2.9 percent rate in the July-September quarter, the strongest pace in two years, as the battered export sector rebounded and businesses finally began restocking their shelves at a faster clip.
The third-quarter gross domestic product, the broadest measure of economic health, was double the 1.4 percent pace in the second quarter, the Commerce Department reported Friday. Economists said that the better-than-expected GDP reading put the Federal Reserve on track to boost interest rates next month.
"This report points to an economy that may be gaining traction — at last," said Quincy Krosby, market strategist at Prudential Financial.
GDP growth went into a pronounced slowdown late last year. Exporters were constrained by a rising dollar, which made their products more expensive on overseas markets, and businesses cut back on their inventory rebuilding in the face of weaker sales.
With the dollar stabilizing, export sales rebounded in the summer and businesses picked up the pace of inventory building. Solid growth is also expected this quarter.
Read Saturday's Arkansas Democrat-Gazette for full details.