Strong exports see US economy grow by 2.9%

Strong exports have seen the US economy grow by 2.9% in the third quarter, the strongest rate in two years.

The figure for the months from July to September was double the 1.4% seen in the previous three months, the Commerce Department said.

Late last year, exporters had been struggling with the effects of the strong US dollar making their products more expensive overseas and leaving businesses cutting back in the face of weaker sales.

But, on a more stable dollar, exports rebounded late in the summer.

Consumer spending also played a role in the growth, up by 2.1% during the quarter.

Although the Federal Reserve Bank is mostly concerned with employment and inflation figures, signs of economic strength could make an interest rate hike more likely.

However, the US election on 8 November means a change is unlikely to take place until December.

Despite the good quarterly figures, analysts believe yearly growth will settle at around 1.6%.

Luke Bartholomew, fixed income investment manager at Aberdeen Asset Management (Frankfurt: 899502 - news) in London, said the GDP figure showed the US was "roughly on track".

He added: "It's a natural bounce back following a pretty underwhelming year so far.

"The election campaign has probably created a degree of uncertainty that has impacted growth."