Economy grows at faster 2.9 percent rate in the third quarter

The U.S. economy picked up steam through the summer at more than double the rate than the spring, although overall growth remains lackluster through the prolonged recovery. 

Gross domestic product, a broad measure of the economy’s health, increased at an annual rate of 2.9 percent in the July-September quarter up from 1.4 percent during the previous three months, which was the best pace since 2014, the Commerce Department reported on Friday.

{mosads}Exports rebounded, businesses finally started restocking and consumer spending increased although at a slower pace than the April-June period.

The nation’s economy grew at a 2.6 percent in 2015 but growth this year isn’t expected to eclipse that level.

Jason Furman, chairman of the Council of Economic Advisers, said that President Obama is calling on Congress to boost infrastructure investments and to pass the Trans-Pacific Partnership during the lame-duck session after the election to create faster growth. 

Democratic presidential nominee Hillary Clinton may get a boost from the latest growth figures, allowing her to argue that she can build on the Obama administration’s policies that carried the economy out of a deep economic ditch following the financial crisis in 2008. 

Meanwhile, Republican Donald Trump has been touting that he is the one to boost the nation’s expansion, saying his policies would lead to growth in the 5 percent range if elected.

Many economists have said that level of growth would be a stretch at best and would probably be impossible to attain. 

“The single most important issue facing the American people is an economy that has failed to deliver jobs, incomes and opportunity,” said Dan Kowalski, Trump’s deputy policy director in a statement.

“The Trump economic plan creates at least 25 million jobs and 4 percent growth through tax, trade, energy and regulatory reforms,” Kowalski said. 

Exports, which have faced headwinds because of a strong dollar, surged at a 10 percent rate in the third quarter, which was the fastest pace since late 2013.

Exports contributed 1.2 percentage point and, overall, trade added 0.83 percentage point to growth.

Inventories, which is one of the most volatile components of GDP, tacked on 0.6 percentage point to the quarter’s expansion after subtracting from growth in the past five quarters.

Consumer spending, which accounts for almost 70 percent of the economy, grew at a 2.1 percent rate but that was slower than the 4.1 percent during the previous quarter. 

House Ways and Means Committee Chairman Kevin Brady (R-Texas) said the while he was glad to see the improvement, “we are going to have to grow at a much stronger rate in order to make up for the lost jobs, earnings, growth and investment that have plagued our communities over the last eight years.” 

“As a new year and a new administration near, House Republicans are ready to work with a new President on the bold tax reform, strong trade agreements and deregulation needed to get this economy moving again,” Brady said.