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US records blockbuster growth in third quarter

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The US economy recorded a blockbuster growth in the third quarter, expanding at a 5.0 percent pace, the best in more-than ten years.

This was great news for the markets as the world’s largest economy showed the strongest sign that growth has gained momentum.

Some of the strength appears to have been sustained, with other data on Tuesday showing consumer spending rising solidly in November, offsetting surprisingly weak durable goods orders.

The reports further set the U.S. economy apart from the rest of the world, where growth is sputtering or activity shrinking.

In revising up its third-quarter gross domestic product estimate, the Commerce Department cited stronger consumer and business spending than previously assumed. It was the fastest pace since the third quarter of 2003.

Previously, the economy was reported to have expanded at a 3.9 percent annual rate. Growth has now been revised up by a total of 1.5 percentage points since an initial estimate in October.

Coupled with a hearty 4.6 percent advance in the prior three months, the economy has now experienced the two strongest back-to-back quarters of growth since 2003.

Underscoring the firming fundamentals, growth in domestic demand was revised up to a 4.1 percent pace, the fastest in nearly four years.

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