Economy Grows For First Time in Year

The U.S. economy grew at a 3.5% annual rate in the third quarter, ending a string of declines over four quarters that resulted in the most severe slide since the Great Depression...

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The economy grew 3.5% in the third quarter and that growth stopped the steady declines which had taken place the four previous quarters.

The growth is better than what forecasters had predicted and the improvement has led some to believe that the trend will continue. From CNN:

The growth, reported by the government Thursday morning, was slightly stronger than expectations. Economists surveyed by Briefing.com had forecast 3.2% growth in gross domestic product, the broadest measure of the nation's economic activity. The economy shrank at a 0.7% rate in the second quarter.

The positive GDP report is one more sign that the economy has likely pulled out of the deep recession that started in December 2007.

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But the stronger-than-expected growth is likely to lead more economists to declare that the economy hit bottom earlier this year and turned higher at some point in the summer.

A rebuilding of inventories by businesses that had slashed production and jobs over the past year was a major contributor to the growth in the third quarter. So was a rebound in auto sales, which were helped by the government's Cash for Clunkers program. The economic stimulus package, with public works projects and aid to state and federal governments, also boosted growth.

The Buzz feels the money in the air, don't you?