Economy gains on consumer spending

New York City The U.S. economy grew at a 2% annual rate in the third quarter as consumer spending climbed the most in almost four years, a sign the expansion is developing staying power.

The increase in gross domestic product matched the median forecast of economists surveyed by Bloomberg News and followed a 1.7% gain the prior three months, Commerce Department figures showed today in Washington, D.C. Household purchases, about 70% of the economy, rose at a 2.6% pace, the best quarter of the recovery that began in June 2009.

“Consumer spending looks considerably better,” Jim O’Sullivan, chief economist at MF Global in New York, said before the report.