Analysts see GDP report as pointing to rate hike


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WASHINGTON (AP) — One analyst says the latest report on economic growth "points to an economy that may be gaining traction -- at last."

Quincy Krosby of Prudential Financial is reacting to today's report that the economy grew at a 2.9 percent rate in the July to September quarter. It's the strongest pace in two years, and double the growth rate of the second quarter.

Economists say the better-than-expected reading puts the Federal Reserve on track to boost interest rates next month. Paul Ashworth of Capital Economics says the report "confirms that the economic recovery has regained some of the momentum lost within the last year."

GDP growth went into a pronounced slowdown late last year. Exporters were constrained by a rising dollar, which made their products more expensive on overseas markets, and businesses cut back on their inventory rebuilding in the face of weaker sales.

With the dollar stabilizing, export sales rebounded in the summer and businesses picked up the pace of inventory building. Solid growth is also expected this quarter.

%@AP Links

155-c-12-(Martin Crutsinger, AP correspondent)-"of weak growth"-AP correspondent Martin Crutsinger reports the economy grew at a 2.9 percent rate in the third quarter. (28 Oct 2016)

<<CUT *155 (10/28/16)££ 00:12 "of weak growth"

156-c-20-(Martin Crutsinger, AP correspondent)-"restocking their shelves"-AP correspondent Martin Crutsinger reports exports were the top reason the GDP improved in the third quarter. (28 Oct 2016)

<<CUT *156 (10/28/16)££ 00:20 "restocking their shelves"

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