A drop in exports is hampering the U.S. economic recovery, which is being driven in large part by consumer spending, Bloomberg reported.
Exports fell last quarter for the first time in 3 1/2 years, according to U.S. Commerce Department figures released on Oct. 26, clipping growth by almost a quarter percentage point. The shortfall was made up by increased consumer spending, higher government outlays and gains in residential construction. Gross domestic product climbed at an annual rate of 2 percent in the third quarter after rising 1.3 percent in the second.
The shift to domestic drivers of the expansion comes at an opportune moment and may be a harbinger of better times in 2013, especially if the rest of the world rebounds and the U.S. avoids the so-called fiscal cliff of higher taxes and lower government spending. Read more.