The economy in the U.S. expanded more than forecast in the thirdquarter, paced by a pickup in consumer spending, a rebound ingovernment outlays and gains in residential construction.

Gross domestic product, the value of all goods and servicesproduced in the U.S., rose at a 2 percent annual rate afterclimbing 1.3 percent in the prior quarter, Commerce Departmentfigures showed today in Washington. The median forecast of 86economists surveyed by Bloomberg called for a 1.8 percent gain.

A housing rebound is helping mend Americans' finances andconfidence, indicating the pickup in demand for expensive itemssuch as automobiles can be sustained. The data is likely to play arole in the upcoming election, allowing President Barack Obama tosay the economy is heading in the right direction, while challengerMitt Romney may argue growth is not fast enough.