WASHINGTON, Dec. 10 (Xinhua) -- Though the U.S. GDP rise in the third quarter was an encouraging 2.8 percent, the best in two years, the expansion did not necessarily bode sure well for a sustained recovery in the country.
The GDP rise came after four consecutive quarters of contraction, 2.7 percent and 5.4 percent in the third and fourth quarters of last year and 6.4 percent and 0.7 percent in the first two quarters of this year.
Economists warned that the third-quarter figure had overstated the strength of the underlying economy, because over half a percentage point of the 2.8-percent growth came from auto sales, which got huge amounts of government bailout funds.
After the Cash for Clunkers program came to an end in August, the U.S. auto sales duly fell.
To economists, sustained recovery hinges on, exports aside, consumer spending, which in turn hinges on employment.
Consumer spending, normally accounting for 70 percent of U.S. economic activity, increased by 1.4 percent in retail sales in October after having dropped by 2.3 percent in the previous month, according to Commerce Department figures.
Though improved, unemployment still remained double-digit at 10.0 percent in November, down from October's 10.2 percent which was the highest in 26 years.
The U.S. economy lost a total of 7.5 million jobs since recession began in December 2007.
U.S. President Barack Obama said recently: "Although we lost fewer jobs than we did last month, our unemployment rate climbed to over 10 percent, a sobering number that underscores the economic challenges that lie ahead."
"We've had a technical end of the recession, which is something that economists and bankers like to talk about," said Robert A. Dye, senior economist at PNC Financial Services Group. "But it's not going to feel like we've had an end to the recession on Main Street until unemployment starts to go down."
Many economists also worry that the effect of the government-funded growth may be short-lived and that the next few quarters may see sluggish growth or even a second dip.
Mark Borthwick, director of U.S. Asia Pacific Council, noted that the U.S. economy will continue to expand, but at a slower pace. "The economy is strong enough to keep going, but not strong enough to grow fast," he said.
"So the question whether we have a V shape recovery is still not answered," Borthwick told Xinhua. "I always hope for a V shape for recovery, but it's very possible it will be a U shape."
Federal Reserve Chairman Ben Bernanke has recently predicted that the economy will continue to grow next year, but he also warned that some important headwinds constrained bank lending and that a weak job market, "likely will prevent the expansion from being as robust as we would hope."
Special Report: Global Financial Crisis