"We're going to have some weakness closing out this year and starting off next year"
- Omair Sharif, a U.S. economist at RBS Securities Inc.
The world's biggest economy expanded more than previously estimated in the third quarter due to the increase in exports and government spending, the Commerce Department said Thursday. The economy grew at an annual rate of 3.1% over the summer, revised up from its previous estimate of a 2.7% annual growth rate. Despite the fact the economy grew at its fastest pace since late 2011, the boost is likely to be lost amid weakening global demand and a move towards tighter fiscal policy.
"We're going to have some weakness closing out this year and starting off next year," said Omair Sharif, a U.S. economist at RBS Securities Inc. in Stamford, Connecticut. "We really want to see business investment coming back because, ultimately, that's going to lead to hiring."
Also Thursday, the U.S. Department of Labor said that the number of new applications for the unemployment benefits rose more than expected last week. The number of initial jobless claims rose by 17,000 to 361,000 in the week ended December 15, up from 344,000 a week earlier. The four-week moving average was significantly lower, falling 13,750 to 367,750.
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