Economy Shows Modest Growth

  • Playlist
  • Download
  • Embed
    <iframe src="" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
  • Transcript

The economy grew at a 2.5 percent annual rate in the third quarter after coming to a near standstill in the first six months of the year.


NPR's business news starts with the economy still treading water.


SHAPIRO: A report out this morning by the Commerce Department says consumers spent enough, and businesses invested enough over the summer to keep the economy from falling into recession. The government says in the latest quarter, from July to September, the gross domestic product grew at an annual rate of 2.5 percent. That's the country's total output of goods and services.

It's healthy growth compared to the anemic numbers in the previous two quarters, so many economists are relieved. But others still see reason for concern. For one, consumers had to dip into their savings to do all that spending, so the savings rate fell. As a result, some economists wonder if Americans will be able to keep up that rate of spending. Then there's the high jobless rate and the poor housing market, both of which continue to drag the economy.

Copyright © 2011 NPR. All rights reserved. Visit our website terms of use and permissions pages at for further information.

NPR transcripts are created on a rush deadline by a contractor for NPR, and accuracy and availability may vary. This text may not be in its final form and may be updated or revised in the future. Please be aware that the authoritative record of NPR’s programming is the audio.



Please keep your community civil. All comments must follow the Community rules and terms of use, and will be moderated prior to posting. NPR reserves the right to use the comments we receive, in whole or in part, and to use the commenter's name and location, in any medium. See also the Terms of Use, Privacy Policy and Community FAQ.

NPR thanks our sponsors

Become an NPR sponsor

Support comes from