And The Band Plays On

Economy Grows at an Energetic Rate in 3Q

Oct 28, 9:19 AM (ET)

By JEANNINE AVERSA

WASHINGTON (AP) - Economic activity expanded at an energetic 3.8 percent annual rate in the third quarter, providing vivid evidence of the economy's stamina even as it coped with the destructive forces of hurricanes Katrina and Rita.

The latest snapshot of the country's economic performance, released by the Commerce Department on Friday, even marked an improvement from the solid 3.3 percent pace of growth registered in the second quarter.

Growth in the third quarter was broad-based, reflecting brisk spending by consumers, businesses and government.

"Holy Katrina! The economy weathered two major hurricanes and in spite of that showed accelerated growth," said Ken Mayland, president of ClearView Economics. "I think what this shows is that fundamentally the economy was and is in really good shape."