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US economy grew at 2.7 per cent rate in July-September quarter, better than initial estimate

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FILE - In this Aug. 30, 2012 file photo, production line workers, Xiao Yins-Wong, left, and Chui M. Wong, straighten the wick in the candles at Chesapeake Bay Candle factory in Glen Burnie Md. The U.S. economy grew at a 2.7 percent annual rate from July through September, much faster than first thought. The strength is expected to fade in the final months of the year because of uncertainty about looming tax increases and government spending cuts. (AP Photo/Jose Luis Magana, File)

WASHINGTON – The U.S. economy grew at a faster 2.7 per cent annual rate from July through September, although the strength may fade in the final months of the year.

The Commerce Department says growth in the third quarter was much better than the 2 per cent rate estimated a month ago and more than twice the 1.3 per cent rate logged in the April-June quarter.

The two biggest factors in the upward revision were larger gains in business stockpiles and a boost in export sales. That offset weaker consumer spending.

Economists believe growth is slowing to a rate below 2 per cent in the current October-December quarter because of disruptions from Superstorm Sandy and worries about sharp tax increases and spending cuts that would occur in January without a budget deal in Washington.

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