WASHINGTON — Gross domestic product increased at a 3.5% annual rate from July through September as consumer spending drove economic growth to its highest rate in more than two years, the Commerce Department reported yesterday.

Consumer spending, which accounts for about 70% of GDP, increased 3.4% at an annual pace, the largest increase since the first quarter of 2007.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.