Excluding food and energy prices, the price index for gross domestic purchases increased 0.4% in the third quarter, compared with an increase of 0.8% in the second.
Recent economic data has been better-than-expected, encouraging hopes for stronger GDP growth in the fourth quarter. Consumer confidence has improved and initial reports point to a strong holiday shopping season.
The $858 billion tax deal, which extends Bush tax cuts across the board for another two years and reauthorizes the extended employment benefits program, is also expected to stimulate consumer spending and business investment.
The deal has prompted several economists to raise their estimates for GDP in 2011. Goldman Sachs has called 2011 the "Year of the U.S.A"Stocks were flat after the report. -- Written by Shanthi Bharatwaj in New York
>To contact the writer of this article, click here: Shanthi Bharatwaj. >To follow the writer on Twitter, go to http://twitter.com/shavenk. >To submit a news tip, send an email to: email@example.com.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV