Third-quarter US output rises 7.9%; Inflation holds
The gross national product grew at a healthy 7.9 percent annual rate in the third quarter after adjustment for inflation, the Commerce Department said Thursday. The strength of the broadest economic indicator, measuring the nation's output of goods and services, showed the recovery was durable enough to withstand mounting trade deficits and the problems of a long, hot summer. The latest gains are on top of the second quarter's strong 9.7 percent growth.
Inflation throughout the economy, as measured in the GNP report, stayed about the same. The government's ''implicit price deflator'' - a broader measure of inflation than the consumer price index - was 3.4 percent in the third quarter, compared with 3.3 percent in the second.