Washington, D.C. (AHN) – The United States economy grew by an annual rate of 3.5 percent, the first good news in the gross domestic product in a year.

The positive data for the three months ending in September was reported Thursday by the Commerce Department. The previous two quarters had seen contractions at annual rates of 6.4 percent and 0.7 percent.

The index that measures prices paid by consumers increase 1.6 percent in the third quarter, the department said, while the previous period saw an increase of 0.5 percent.

The inflation index, excluding food and energy prices, rose 0.5 percent; the index edged up 0.8 percent in the second quarter.

Final U.S. sales grew at an annual rate of 3 percent, the fastest pace in more than three years, while consumer spending rose at a 3.4 percent annual rate, the biggest gain in more than two years

Reversing 14 straight quarters of decline, investment in housing grew at an annual rate of 23.4 percent.

The report also found:
• Business investment in structures dropped at an annual rate of 9 percent
• Spending on durable goods rose 22.3 percent
• Consumer spending on nondurable goods was up 2 percent
• The rate of savings slipped to 3.3 percent from 4.9 percent
• Business investment slipped 2.5 percent, an increase from six months ago when the sector plummeted at an annual rate of 39.2 percent
• Inventories fell by $134.4 billion after dropping a record $163.1 billion in the second quarter
• Exports increased 14.7 percent while imports rose 16.4 percent

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