U.S. economy grows 2.0% in third quarter

WASHINGTON (MarketWatch)
The U.S. economy grew 2.0% in the third quarter, fueled by higher consumer and government spending and more home building, according to a preliminary government estimate
Economists surveyed by MarketWatch projected gross domestic product would rise to 1.7% from 1.3% in the second quarter
Consumer spending, which has the biggest impact on GDP, rose 2.0% in the July-to-September period, compared to 1.5% in the second quarter
Real final sales of U.S.-made goods and services advanced 2.1%, compared to 1.7% in the prior three-month period
Government spending jumped 3.7%, the biggest increase since mid-2009, mainly because of higher defense outlays
Also, investment in housing surged 14.4%
Net imports, which subtract from GDP, fell 0.2%
Exports dropped a sharper 1.6%
Business investment outside the residential sector fell 1.3%, the biggest drop since late 2009
Inflation as measured by the consumer PCE index rose 1.8%, or 1.3% excluding food and energy
Disposable income moved up 2.6%, but that was down from a 3.8% increase in the second quarter
The personal savings rate fell to 3.7% from 4.0%