The world's largest economy US climbed out of recession as it grew by 3.5 percent in the third quarter ending September 30 -- the first quarterly expansion in a year -- thanks to higher consumer and government spending among others.
The economy, which was battered by the worst financial turmoil since the 1930s Great Depression, expanded last in the second quarter of 2008, when GDP rose 1.5 percent.
The advanced estimates from the US Bureau of Economic Analysis (BEA) released today showed that American GDP expanded 3.5 per cent in the third quarter.
Consumer spending, which accounts for two-thirds of the GDP, grew 3.4 percent in the quarter under review compared to 0.9 percent fall in the previous quarter.
America is the latest advanced economy to shrug off recession and joins the likes of Germany, France, Japan and Singapore.
The economy shrank 0.7 percent in the second quarter after contracting at a staggering pace of 6.4 percent in the first three months of 2009.
One of the main factors for the upturn in economic activities in the third quarter is the government's 'Cash for Clunkers' programme for the auto industry, which resulted in increased car sales. The initiative which ended in August had offered rebate of about USD 4,500 for consumers to purchase new cars and sell their old models.
