US economy grew at blistering pace in 3rd quarter

The U.S. economy grew at a blistering pace over three months ending in September, more than doubling growth in the previous quarter and rebuking worries about a possible recession. The robust performance, however, complicates the fight to dial back inflation.

Fresh GDP data released on Thursday, which exceeded economist expectations, reinforces other recent indicators of a strong economy resisting the Federal Reserve's effort to cool price increases with a slowdown.

A blockbuster jobs report earlier this month exceeded economist expectations by nearly twofold. Consumer spending, which accounts for nearly three-quarters of U.S. economic activity, surged in September, according to data released last week.

U.S. GDP grew at a 4.9% annualized rate over the three-month period ending in September, accelerating from a 2.1% annualized rate over the previous quarter.

The surge owed in large part to an increase in consumer spending, the Bureau of Economic Analysis, a government agency, said on Thursday.