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The economy grew at an annual rate of 2.5% in the three months ending Sept. 30, the government reported, easing fears that the nation would fall into a second recession but still too slow a pace to cut significantly into the high unemployment rate.

The economy grew slightly faster in the spring than previously estimated but remained dangerously weak in the face of high unemployment and higher gas prices. Many economists foresee slightly better growth in the current July-September quarter. The annual growth rate was 1.3 percent in the April-June quarter, up from an estimate of 1 percent made a month ago, the Commerce Department said Thursday. The improvement reflected modestly more consumer spending and a bigger boost from trade.

The economy grew much slower than previously thought in the second quarter as business inventories and exports were less robust, a government report showed on Friday, although consumer spending was revised up.

A pair of weak economic reports Thursday show the American recovery remains fragile: Economic growth slowed sharply in the first quarter, and jobless claims unexpectedly jumped last week.

The economy grew more quickly than previously estimated in the fourth quarter as businesses maintained fairly solid spending and restocked shelves to meet rising demand.

China's gross domestic product in the fourth quarter grew 9.8% from a year earlier, faster than the third quarter's 9.6% rise, which may increase market expectations for further tightening on monetary policy.

China's GDP figures are "man-made" and therefore unreliable, the man who is expected to be the country's next head of government said in 2007, according to U.S. diplomatic cables released by WikiLeaks.

The U.S. economy grew more than previously calculated in the third quarter, led by stronger consumer spending and fueled by labor income gains that may stoke demand into 2011.

The gross domestic product number came in at a rather soft 2% growth, up slightly from last quarter’s 1.7%. From the standpoint of creating new jobs, 2% just doesn’t cut it. We need about 100,000 to 125,000 new jobs a month just to keep up with population growth and a 2% GDP will not give us half that, as we saw last quarter. Most economists say you need about 3.5% GDP growth to get solid job reports.

China had tried to temper expansion and the price rises that accompany excessively rapid growth.