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[U.S.]
Economy finally back in gear
Government says GDP grew 3.5% in third quarter, ending a year-long string of declines and coming in better than forecasts.
By Chris Isidore, CNNMoney.com senior writer
Last Updated: October 29, 2009: 9:31 AM ET

NEW YORK (CNNMoney.com) -- The U.S. economy grew at a 3.5% annual rate in the third quarter, ending a string of declines over four quarters that resulted in the most severe slide since the Great Depression.

The growth, reported by the government Thursday morning, was slightly stronger than expectations. Economists surveyed by Briefing.com had forecast 3.2% growth in gross domestic product, the broadest measure of the nation's economic activity. The economy shrank at a 0.7% rate in the second quarter.

The positive GDP report is one more sign that the economy has likely pulled out of the deep recession that started in December 2007.

The reading by itself doesn't mark an end to the recession; the economy actually grew in the second quarter of 2008. (The National Bureau of Economic Research, which officially dates the beginning and end of recessions, is not expected to declare that the current recession has ended until sometime in 2010.)

But the stronger-than-expected growth is likely to lead more economists to declare that the economy hit bottom earlier this year and turned higher at some point in the summer.

A rebuilding of inventories by businesses that had slashed production and jobs over the past year was a major contributor to the growth in the third quarter. So was a rebound in auto sales, which were helped by the government's Cash for Clunkers program. The economic stimulus package, with public works projects and aid to state and federal governments, also boosted growth.

But the fact that much of the gain was from these short-term programs raises some concerns about whether the economy can keep growing over the next few quarters.

There were other signs of growth that were more encouraging, however. Consumer spending rose at a 3.4% rate, the biggest increase in nearly three years. Spending by consumers accounts for more than two-thirds of the nation's economic activity.

Housing, which has been a drag on the economy since the popping of the real estate bubble in early 2006, contributed to the economy's growth as well. Investments in residential real estate surged 23% in the quarter.
Other reports in recent weeks have shown that housing sales, home prices and new home construction rose during the quarter. But the housing market also got a lift from the $8,000 tax credit for first time home buyers that is due to expire next month.


[World]
U.N cutting staff in Afghanistan
October 29, 2009 -- Updated 1140 GMT (1940 HKT)

{Afghan police rush to the site of a Taliban attack on a hotel in Kabul on Wednesday.}
STORY HIGHLIGHTS
> U.N. official cites security concerns after Taliban attack that killed five
> Non-essential staff ordered to be ready to leave Afghanistan
> Taliban has threatened to disrupt November 7 presidential runoff
> U.N. reduced staff before August 20 election

Kabul, Afghanistan (CNN) -- Non-essential U.N. staff across Afghanistan have been ordered to pack their bags and be ready for evacuation after a deadly attack on a U.N. guesthouse, a senior U.N. official said Thursday.

The staff members will leave the country because of security concerns, according to the official, who said a smaller staff will reduce exposure during the upcoming presidential runoff, but will not affect U.N. capabilities to support the election.

The United Nations also reduced non-essential staff ahead of the August 20 election, the official said.

The order comes a day after Taliban militants stormed the guesthouse in an early morning raid on Wednesday, killing five U.N. staff members and wounding nine more. At least 25 U.N. employees were staying at the guesthouse, including 17 members of the U.N. election team.

Afghanistan's presidential runoff election is scheduled for November 7. Taliban militants have threatened to disrupt the polling.

The United Nations said it was reviewing its security procedures in the aftermath of Wednesday's attack.

"This is a sad day and very difficult day for the United Nations," U.N. Secretary General Ban Ki-moon said Wednesday, condemning the "shocking and shameless act and the terrorists who committed this crime" and noting that the incident is a reminder of how tough the U.N. job is in Afghanistan.

Ban said he was assured by Kai Eide, the top U.N. official in Afghanistan, that Afghan President Hamid Karzai had instructed his Interior Ministry to strengthen security, and he said the United Nations would do likewise -- in Kabul as well as elsewhere in the country.

"We will, of course, review our security procedures, as we do regularly for the Afghanistan mission as a whole. We will take all necessary measures to protect our staff," Ban said.

In the strike, weapons fire and explosions pounded the heart of the capital starting about 6 a.m. local time. The fighting began as sporadic gunfire, but intensified over time, lasting more than an hour.

The attack took place in a relatively secure section of the capital, in the vicinity of a number of government buildings. The firefight, which included machine-gun fire and rocket-propelled grenades, appeared to be concentrated near the guesthouse.

The Taliban claimed responsibility for the attack, saying on an insurgent Web site that three militants had killed 50 foreigners, who were election organizers. The claim could not be independently confirmed.

Officials said three militants were killed.

International troop levels increased this year, to provide security for the Afghan election in August, and the United States is considering deploying more troops.