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The U.S. economy grew at an annual rate of 2.5% in the three months ending September 30, alleviating fears that the nation would fall into another recession, the government reported. Setting aside worries about the economy, consumers and businesses stepped up spending to boost gross domestic product (GDP) growth to its fastest pace in a year.

In a surprise setback on the economic front, new orders for long-lasting manufactured goods — durables — fell in February, suggesting some unexpected softness in manufacturing activity and business investment plans. However, recent labor market gains are persisting, as indicated by a decline in new jobless benefit claims last week and in the four-week average for such claims to its lowest level in more than two-and-a-half years.

According to the Commerce Department, durable goods orders fell 0.9% in February after rising 3.6% in January. Economists polled by Reuters had expected durables orders to increase 1.1% last month. Excluding transportation, such orders fell 0.6% after declining 3.0% in January.