Economy Shows Signs of Life: GDP Jumps 2.5%

The US’ total economic output shot up 2.5% from July through September, after two dismal quarters of rising just 0.4% and 1.3%, according to a new GDP report released today. Consumers amped up their spending on both durable goods and services, and business investments soared 16.3%—indicating that we may not be in for a second recession after all.

“Despite negative economic headlines, we’re not seeing evidence of a slowdown in demand,” a JetBlue executive tells the Wall Street Journal. The numbers were also boosted by federal government spending, though drops in state government spending dampened that effect. And there’s some more moderately positive news: New jobless claims fell 2,000 this week, after dropping 7,000 last week. But that still leaves claims at 402,000—economists think claims must fall below 400,000 for job growth to outpace job losses. (More GDP stories.)