The economy grew at its quickest pace and had its best back-to-back growth in over a decade driven by consumer and business spending. Fred Katayama reports.
A whopping surprise: The U.S. economy grew at a much faster rate in the third quarter than previously estimated: 5.0 percent. That's the quickest pace and the best back-to-back growth in over a decade. The U.S. further distanced itself from the slowdown slamming its trading partners in Europe, Japan and China. Driving the economy: consumers spent at the fastest pace since the fourth quarter of last year. Barclays Capital chief U.S. economist Michael Gapen. SOUNDBITE: MICHAEL GAPEN, CHIEF U.S. ECONOMIST, BARCLAYS CAPITAL (ENGLISH) SPEAKING: "Two thirds of the economy is related to consumption. History suggests that business investment lags consumption growth. So if the overall economy is starting to accelerate, 2015 could also be a fairly strong business climate." And businesses spent more than previously thought on equipment, intellectual property, and buildings. Growth in the fourth quarter, however, is expected to slow. Both, lower gas prices and an improved jobs picture, the strength of the economy's momentum should keep the Federal Reserve on track to begin hiking interest rates by the middle of next year.