U.S. GDP rises 2%

South of the border, consumers are buying again.

U.S. real GDP increased 2% in the third quarter of 2012, after increasing 1.3% in the second quarter, according to estimates released today by the U.S. Bureau of Economic Analysis.

Read: UK out of recession

Economists had predicted an increase of 1.8%.

This boost was thanks in part to accelerated consumer spending on goods, particularly durable goods, cars and car parts.

More people bought houses, and the federal government spent more on national defense.

Read: Boomers look to real estate for retirement income

However, business investment fell, as spending on equipment and software slowed and spending on nonresidential structures turned negative.

Americans saved less in Q3: 3.7%, compared with 4% in Q2.

Prices of goods and services purchased by U.S. residents rose in the third quarter, increasing 1.5%, following a 0.7% increase in the second quarter.

Energy prices in particular rose, while food prices fell.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.