Economic Growth Accelerates

U.S. economic growth accelerated over the summer and early fall, keeping alive the possibility of a late-year interest-rate increase from the Federal Reserve - even in the face of stock market turmoil.

The strongest consumer spending in 5 years propelled the latest gain for the long-running economic expansion.

The gross domestic product, the sum of all goods and services produced within U.S. borders, rose at a seasonally adjusted annual rate of 3.5 percent in the July-September quarter, the Commerce Department said Friday.

It came on top of robust 3.3 percent growth in the second quarter and a torrid 4.9 percent pace in the first. Average growth over the past 12 months - 4 percent - is the best since 1984.

Analysts said that’s remarkable, especially for an economy that’s gone more than 6-1/2 years without a recession and with inflation dwindling to a 30-year low.

“This is a Rolling Stones expansion; it’s getting old but it keeps rocking,” said economic consultant Everett M. Ehrlich, undersecretary of Commerce in President Clinton’s first term.