GDP Rises 3.1% in Third Quarter

The U.S. economy grew by 3.1% during the third quarter of 2002, according to a Commerce Department report released Thursday - but that was less than most analysts had expected, Bloomberg reported.

The gross domestic product, or the total value of all goods and services produced in the country, improved upon the second quarter's increase of 1.3%, but analysts had expected third quarter growth of 3.7%.

Economic growth in the quarter ended Sept. 30 was held back by an expanding trade gap and slowing commercial construction, Commerce said.

The slower growth in the third quarter may be eclipsed by even slower growth in the final three months of 2002, some analysts think.

Third quarter economic growth was bolstered by what some are calling an unsustainable level of consumer spending, Bloomberg said, and if spending does fall off in the fourth quarter, GDP could slip lower or even post negative growth.

Sherry Cooper, chief economist at BMO Nesbitt Burns Inc., told Bloomberg that the economy is "uneven and faltering," and that confidence in the economy has "just been crushed."

The trucking industry is sensitive to economic changes, and as the economy slows, trucking companies could feel the pinch.

In another piece of damaging economic news, the Labor Department said that initial jobless claims rose 16,000 last week to 410,000.

The four-week moving average dipped slightly to 401,750 from 405,250 in the week ended Oct. 26.

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