Economy expands in third quarter

The economy expanded at its largest rate in four years in the third quarter, even though it has since slowed and is expected to falter into 2008. In the third of three readings, the gross domestic product increased 4.9% in the July-to-September quarter, unrevised from its previous estimate last month, according to a report from the Department of Commerce. The third-quarter GDP was the strongest since GDP expanded at a 7.5% clip during the third quarter of 2003. The strong gross domestic product figure came despite a 20.5% decrease in spending on housing projects, which was offset stronger numbers for exports, personal consumption expenditures and private inventory investment.