Exports push U.S. economy up 3.9 percent

Washington -- The U.S. gross domestic product rose 3.9 percent, despite a nationwide housing slump, due to a growth in exports, the U.S. Commerce Department said Wednesday.

The July-September figures -- the strongest quarterly GDP growth since a 4.8 percent increase the first quarter of 2006 -- exceeded most analysts' forecasts of a 3.1 to 3.4 percent growth rate.

U.S. exports surged 16.2 percent, even as builders slashed investment in housing projects by 20.1 percent, the largest drop in a year, the department said.

Imports increased 5.2 percent.

Consumer spending, the economy's biggest component, rose 3 percent after increasing 1.4 percent in the second quarter.

Purchases of durable goods meant to last three or more years rose 4.4 percent after increasing 1.7 percent April through June, the department said.

Third quarter non-durables spending rose by 2.7 percent. Services spending climbed 2.9 percent.

Business spending increased 7.9 percent, down from the second quarter's 11 percent.

Federal government spending rose 6.8 percent following a 6 percent rise the second quarter.

The value of all goods and services produced in the United States climbed 3.8 percent in the second quarter and 0.6 percent in 2007's first three months, the department said.

© 2007 United Press International.