US economy powers ahead with 2% growth in Q3

The US economy grew by 2% in the third quarter of 2012, beating forecasts despite ongoing fears the US elections and the impending fiscal cliff are putting businesses off from spending heavily.

The figure from the US Bureau of Economic Analysis was ahead of forecasts from economists, who had predicted a 1.8% increase. It follows growth of 1.3% in Q2 - and has stopped a downward trend from developing, Q1 GDP having come in at 2%. It also means the world's largest economy continues to grow quicker than other developed nations, although sceptics remain concerned that the country's unemployment rate continues to hover around the 8% mark. European indices and US stock market futures pared losses following the announcement.