America is starting to spend a little more. New data show consumers and businesses set aside their fears about the recovery in the third quarter, helping to drive economic growth at its fastest pace in a year. U.S. Gross Domestic Product expanded at a 2.5 percent annual rate in the third quarter- a jump from just 1.3 percent in the previous quarter. Consumers account for about 70 percent of the US economy. Rebecca Blank, Acting Deputy Secretary of Commerce: "It does say in terms of the decisions they are making in their personal daily lives they are feeling confident enough to spend some money, even though the confidence data may tell us that they are still looking at some of the events out there and being worried." Also higher: business spending - up more than 16 percent. Companies splurged on equipment and software, and invested in buildings. And more recent data are also encouraging. Claims for unemployment benefits fell modestly last week, pointing to gradual improvement in the labor market. Michael Gapen, Senior Economist at Barclays: "Jobless claims suggest I would say sideways movement that things have stabilized. We get a little bit better outlook and then we think hiring will accelerate." But for now the recovery's pace remains too weak to lower the jobless rate, still stuck above 9 percent. (Bobbi Rebell/Reuters)