Economic growth beats expectations

The nation’s economy expanded at a 2.8 percent rate in the third quarter, exceeding expectations. 

Increases in exports, consumer and government spending helped boost the July-September quarter’s advance figure, the Commerce Department said on Thursday. 

Economists had expected about 2 percent growth in the third quarter. 

Growth in the second quarter came in at 2.5 percent, the best showing in a year. 

The economy showed strength across many areas as businesses stockpiled, and the housing market continued its recovery as builders picked up the pace of construction. 

Expectations for economic expansion through the end of the summer, which saw a tapering of jobs growth, were lowered amid the government’s 16-day shutdown. 

The fiscal battles in Congress could dent fourth quarter progress. 

Consumers spent at a 1.5 percent pace, which was slightly slower than the 1.8 percent in the second quarter. 

But they spent more on goods — up 2.7 percent compared with 1.6 percent — whereas spending on services, such as utilities fell to 0.1 percent from 1.2 percent in the second quarter. 

The Labor Department will release October jobs figures on Friday, which could come in as low as 100,000, much lower than the monthly average over the past few years of about 150,000.