US reveals latest economic growth

<p>Economic growth is continuing in the US.</p>

The US has revealed its economic recovery is still gathering pace, with an expansion of 2.8 per cent recorded in the third quarter of the year.

Analysts had expected the figure to be slightly lower, after growth of 2.5 per cent in the second quarter of 2013.

A boost to home construction was one of the major factors behind the rise in growth in the US economy, along with increasing exports.

Chris Thornberg, partner at Beacon Economics, described the growth of 2.8 per cent for the third quarter of the year as a "good number".

He added: "You have got to remember at the start of the year there was a $2.8 billion (£1.74 billion) tax increase after the fiscal cliff."

However, Mr Thornberg also pointed out that around 0.8 per cent of the economic growth revealed by the US is coming from inventory build-up – such as cars that are unsold.

The Dow Jones closed at a new record high earlier this week, with this seen as another indicator of the improving economic situation in the US.

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