Economy grows briskly in third quarter

WASHINGTON (AP) -- The U.S. economy, stuck in low gear in the spring, lurched ahead at a brisk 4 percent annual rate in the summer, a stronger performance than the government previously thought.

The latest reading on gross domestic product, considered the best barometer of the nation's economic health, showed the economy growing at a faster pace in the third quarter than the 3.1 percent growth rate first estimated a month ago, the Commerce Department reported Tuesday.

GDP measures the total value of goods and services produced within the United States. The revised reading, based on more complete data, also exceeded analysts' expectations. They were forecasting a 3.8 percent growth rate in the third quarter.

Stronger inventory building by businesses, more robust spending by the government and an improved trade picture were the major reasons behind the upward boost to third quarter GDP.

Separately, new-home sales fell by 4.5 percent in October from the previous month.