U.S. Economy Posts Strongest Growth in Two Years

The U.S. economy grew faster than expected last quarter, posting its strongest performance in two years, according to a new Commerce Department report.

Gross domestic product expanded at an inflation-adjusted annualized rate of 4.3% in the third quarter, up from 3.8% in the prior quarter. The report, which was delayed due to the government shutdown, pointed to consumer spending and exports as the primary drivers behind the acceleration.

The stronger-than-anticipated growth could influence the Federal Reserve's approach to interest rates when policymakers meet next month. A more robust economy typically reduces pressure on the central bank to cut rates as a way to stimulate growth.