WASHINGTON -- Government reports next week probably will show the U.S. economy grew faster in the third quarter than previously estimated and orders for long-lasting, higher-priced goods rose in October, analysts said.
"We are hitting next year with strong domestic momentum," said David Jones, chief economist at Aubrey G. Lanston & Co. in New York.The economy probably grew at a 5 percent annual pace in the third quarter, according to the average of 23 analysts surveyed by Bloomberg News. That would be up from the previous estimate of 4.8 percent. Gross domestic product grew at a 1.9 percent annual rate in the second quarter and 3.7 percent in the first. The Commerce Department issues its GDP report Wednesday.
Orders for durable goods -- products such as autos made to last more than three years -- probably rose 0.2 percent last month, after a drop of 1.3 percent in September that was the first decline in five months, according to the average of 25 analysts.
The Commerce Department issues the report Tuesday.
Reports of higher GDP growth and orders for durable goods would increase the likelihood of Federal Reserve policy-makers raising the overnight bank lending rate in the first half of 2000, Jones said.
The Fed's policy panel, the Federal Open Market Committee, boosted the rate a quarter point to 5.5 percent Tuesday--the third increase this year.
The economy should pick up significant momentum in the current fourth quarter as businesses and consumers prepare for the holiday shopping season.