Gross Domestic Product Grows at a Faster Rate

The nation’s gross domestic product – a common measure of economic growth – is increasing at a faster rate, according to a report released today by the Commerce Department.

 The report, which indicates that economic activity is picking up after nearly stalling out in the first half of the year, is welcome news for consumers who fear the nation is falling back into a recession. The gross domestic product grew at an annual rate of 2.5 percent in the third quarter of 2011, the department reported. In the second quarter the GDP grew by 1.3 percent.

 Increased spending by consumers, businesses and the federal government fueled the rise in gross domestic productivity, which reflects the output of goods and services in the U.S. The increases were partly offset by declines in inventory investment and cuts in state and local government spending.