US economy thrives while others struggle

Washington

THE US is proving to be an oasis of prosperity in the midst of a troubled world economy.

Unemployment dropped to a six-year low of 5.9 per cent in September as payrolls rose by a greater-than-forecast 248,000, a Labor Department report showed on Friday. Other data released last week showed US factories had their strongest quarter in more than three years, while exports rose to a record in August.

St Louis-based Macroeconomic Advisers bumped up its estimate of third-quarter growth to 3.3 per cent, from 2.8 per cent, after government data published on Friday showed the US trade deficit shrank in August to its lowest level in seven months.

"The internal dynamics of the economy are very strong right now," said Nariman Behravesh, chief economist in Lexington, Massachusetts, for consulta…