Business Highlights

Economy growing but recovery could be at risk

WASHINGTON (AP) — The economy grew at a 3.5 percent pace in the third quarter, the best showing in two years, fueled by government-supported spending on cars and homes. It's the strongest signal yet that the economy has entered a new, though fragile, phase of recovery and that the worst recession since the 1930s has ended.

Going forward, many analysts expect the pace of the budding recovery to be plodding due to rising unemployment and continuing difficulties by both consumers and businesses to secure loans.

The much-awaited turnaround reported Thursday by the Commerce Department ended the streak of four straight quarters of contracting economic activity, the first time that's happened on records dating to 1947.

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Investors rush back into stocks as economy grows

NEW YORK (AP) — Stocks logged their best day in three months as investors rushed into the market on word the economy grew faster than expected during the summer.