The US economy grew at its quickest pace in 11 years in the third quarter. The figures from the Commerce Department are the strongest sign yet that growth in the country has accelerated.
Gross domestic product was revised up from earlier estimates to 5 percent from the 3.9 percent rate reported last month. Stronger consumer and business spending than first predicted have been given as the reason for the revision in GDP.
“Two thirds of the economy is related to consumption. History suggests that business investment lags consumption growth. So if the overall economy is starting to accelerate, 2015 could also be a fairly strong business climate.,” said Michael Gapen Chief US economist, Barclays Capital.
The unemployment rate in the US was 5.8 percent in November leading to predictions there will be solid gains in consumer spending.
Growth of about 3 percent is forecast for 2015 which would be the fastest pace for a decade.
It’s also anticipated the Federal Reserve will being raising interest rates in 2015.