US revises up last quarter’s economic growth to 2.9% rate

AP Economics Writer WASHINGTON (AP) – The U.S. economy grew at a 2.9% annual rate from July through September despite high interest rates and chronic inflation, the government said Wednesday in an upgrade from its initial estimate. Last quarter’s rise in the U.S. gross domestic product, or the economy’s total output of goods and services, followed two straight quarters of contraction. That decline in output had raised fears that the economy might have slipped into a recession in the first half of the year. Since then, though, most signs have pointed to a resilient if slow-moving economy. Wednesday’s report showed that the restoration of growth in the July-September period was led by solid gains in exports and consumer spending that was stronger than originally reported.