American Economy Sees Only Modest Growth

The U.S. economy has seen modest but consistent growth over the last quarter, up to a 2% annual rate from a 1.3% rate in April-June. The climb is a result of increased spending by both consumers and the federal government. Still, job creation remains low.

The upcoming elections have much to do with the future of America’s economy; Republican nominee Mitt Romney is known for his attacks on President Obama’s approach to the economic crisis. Growth has indeed slowed from last year, but Obama insists that it is growing steadily.

Meanwhile, analysts have yet to express optimistic outlooks.

Paul Ashworth of Capital Economics said: “We suspect that growth will slow a little in the fourth quarter, and expect it to remain close to 2 percent next year.” explains:

“The economy grew faster last quarter in part because consumer spending rose at a 2 percent annual rate, up from a 1.5 percent rate in the second quarter. Spending on home building and renovations increased at an annual rate of more than 14 percent.”

It adds that “federal spending surged, mainly because of the sharpest increase in defense spending in more than three years.”