The US economy had an even stronger third quarter than was previously reported. The Commerce Department revised growth for the July-September period from 3.9%, which was already an impressive number, to an astonishing 5%. It was the largest level of growth for the US economy since 2003.
The economy took quite a while to dig itself out of the Great Recession, which lasted from 2007 to 2009. Such sluggishness is typical of recessions caused by the financial sector. The two years following the recession saw ups and downs, but the economy began to strengthen more quickly the past two years.
It appears 2014 will be a banner year for the US economy. After a sluggish start, the US saw growth rates of 4.6% and 5% in the second and third quarters. For a developed nation such as the US, those numbers are quite impressive.
While economists predict a bit of a slowdown to around 2.5% in the fourth quarter, the jobs market continues to expand significantly. November saw over 321,000 jobs created, the most in 3 years. More people working during the holiday season likely means more people shopping and spending. Consumer spending accounts for roughly 70% of the US economy.
Economists are predicting 3% growth in 2015, which would be the strongest year for economic growth since 2003. As of now, there is nothing on the horizon that would appear to threaten that growth. The job market is expanding, fuel prices are plunging, and even the cost of health care is growing slower than normal. Barring some unforeseen misfortune, 2015 should be another big year for the American economy.