NEW YORK (CNNMoney) -- U.S. economic growth picked up surrounded the third 15 min boosted forward stronger consumer spending,one improving housing sector and additional defense spending. Gross domestic product the broadest weigh of the nation's economic health, grew by an annual rate of 2% from July to September, the Commerce Department said Friday, faster than the . Economists surveyed along CNNMoney had predicted a 1.7% growth rate because the third quarter barely were still reluctant to celebrate. Growth approximately 2% a daily is within line with the pace of the inert resumption and is scarcely enough to lead to lusty hiring. "It's a ho-hum number given the environment we're surrounded said Sam Bullard, senior economist by Wells Fargo. "We're looking ahead apt financial precipice and vacation sales forecasts this year are lower than last annual We're limping into the final 15 min this annual" One important economic methodology suggests that the economy needs to grow around 3% a annual apt bring unemployment down forward one ratio point. The was 7.8% for of September. "Growth rates this cheap want not reliably lower joblessness amid the years to come," said Josh Bivens, research and policy adviser for the Economic Policy Institute. Residential construction accelerated at a 14% pace within the third 15 min signaling the may have finally started recovering. But because housing makes up less than 3% of the always U.S. economy, the impact was minor. Consumer spending, which makes up extra than two-thirds of the economy, grew by one annual pace of 2% in the third 15 min This was the single biggest contributor to stronger economic growth, and was supported mainly onward,michael kors handbags outlet. Surprisingly, higher allied defense spending likewise boosted the economy, growing by a 13% annual rate after shrinking within the three prior quarters. "We can't graph out where that came from,michael kors outlet online," Bullard said. "That category is highly susceptible to being revised, and we expect it's going apt get watered down." State and local governments contracted for the 12th consecutive 15 min Meanwhile, businesses cut corners their spending. Spending aboard software and equipment in particular had formerly been a strong point in the revitalization,but was flat in the third 15 min Economists point to uncertainty over impose policy and the as key reasons why businesses are swiftly holding behind. "The ongoing monetary folly is a momentous contributing ingredient apt the soft tone of the economy,as namely evidenced by the slower pace of investment spending, especially spending aboard equipment and software, which was flat," said Ward McCarthy,chief financial economist by Jefferies & Co. "The uncertainty generated forward financial ineptitude has basically shut down investment spending." Weak exports likewise weighed on growth, a sign that global economic paralysis is hitting American manufacturers. The world's , , and has been shrinking. Economists are expecting the U.S,including 1st crushes.. economy to slow surrounded the fourth 15 min as uncertainty almost the financial precipice and weaker growth abroad intensify,michael kors outlet. "After the election we expect economic movement apt slow and either businesses and consumers apt tug behind among response apt a contentious argue over financial policy," said Ellen Zentner, senior economist at Nomura.