Real domestic product (GDP) grew 3.5 percent at an annual rate in the third quarter of 2014 and showed an improvement in the labor market, rising consumer sentiment, domestic energy security, according to advance estimates from the Bureau of Economic Analysis (BEA).
Exports have picked up to a 4.6 percent pace over the last four quarters, "despite the continued substantial slowdown in the GDP growth of our major trading partners since 2010," affirmed the BEA.
"This slowdown reflects not just challenges in the euro area, but also slower growth in several key emerging market economies like China, Mexico, and Brazil." State and local government spending went up at a 1.3 percent annual rate, "the sixth increase in the last seven quarters, despite facing more significant challenges in the current recovery than in other recent business cycles," noted the BEA.
The BEA also concluded that the overall price index for GDP has risen 1.6 percent over the past quarters and have continued a trend of "subdued inflation" since the end of the recession.
While real private domestic final purchases (PDFP), the sum of consumption and fixed investment, is up 2.8 percent over the last four quarters. This is a faster four-quarter growth than real GDP.
A statement from the White House on the data commented that, "Since the financial crisis, the U.S. economy has bounced back more strongly than most others around the world, and the recent data highlight that the United States is continuing to lead the global recovery." The White House added that, "Nevertheless, more must still be done to boost growth both in the United States and around the world by investing in infrastructure, manufacturing, and innovation; and to ensure that workers are feeling the benefits of that growth, by pushing to raise the minimum wage and supporting equal pay.
The US has experienced strong growth in the last two quarters which has suggested that the US economy has bounced back since the first quarter decline.