The US economy surged in the third quarter, growing even faster than originally thought, according to government data released on Tuesday, bolstering hopes for a sustained recovery in 2004.
The nation's gross domestic product (GDP) grew at an annual rate of 8.2 per cent in the three months ended 31 September, the fastest pace since 1984, the Commerce Department reported. That was a percentage point higher than the government's previous estimate, made last month, that the economy grew at a 7.2 per cent pace, itself a remarkable rate.
Corporate profits were up 30 per cent in the third quarter from a year earlier, according to the report, one of the reasons firms might be feeling more confident.
More than halfway through the fourth quarter, the economy appears to be continuing to improve, if less dramatically than it did in the third quarter. Last week, the Conference Board said its index of leading economic indicators was up 0.4 per cent in October.
