The nation's GDP rose at a two-point-five percent annual rate during the third quarter as consumer spending and business investment increased.
That's the fastest rate of growth for the U.S. economy in a year.
Household purchases rose by a larger-than-expected 2.4 percent pace during a quarter when incomes fell by the biggest margin in two years.
The drop in personal income is attributed to the weak job market.
Business spending on things like equipment was up by more than 17 percent in the third quarter.