The American economy expanded during the third quarter at the fastest rate since 1984, the government reported today, offering hope that the long economic malaise has finally ended.
Consumer spending soared, foreigners bought American-made goods at a surprising clip, and companies increased their investments in equipment and technology at a pace reminiscent of the late 1990’s boom.
Economists welcomed the report as a sign of strength not seen since 2000, but they cautioned that economic growth was almost certain to slow in the months ahead, as the effects of the recent tax cut and a surge in mortgage refinancing wear off. Indeed, the stock market ended trading with little change today, reflecting questions about the sustainability of this rate of growth. [New York Times]