US economy: Blockbuster Q3 numbers

Defying dire warnings of a recession, the US Economy grew almost 5% in the July to September quarter, as higher wages gave a much-needed boost to consumer spending and demand. At a 4.9%, this was the fastest pace of GDP growth in nearly two years. In fact, the US GDP expanded at a pace well above what fed officials regard as the non-inflationary growth rate of 1.8%. The economy was also helped by a rebound in residential investment after 9 straight months of decline, and a rise in government spending.