The global economy has been chugging along in low gear for the last few years, but the prospect of a big boost in government spending, an idea put forward by President-elect Donald Trump, could help it pick up speed.
That's prompted the Organisation for Economic Co-operation and Development, a Paris-based think tank, to raise its global economic forecast Tuesday.
The most recent signs that the U.S. economy is gaining strength came from the latest government data, which showed that growth was faster than initially thought in the third quarter. The Commerce Department boosted its estimate of third-quarter gross domestic product to a 3.2 percent annual rate, up from the previous estimate of 2.9 percent.
Economists were especially encouraged by an even bigger boost in real gross domestic income, an alternative measure of the economy, which surged at a 5.2 percent annual rate. Corporate profits were up by 6.6 percent.
The latest overall growth, the best in two years, was helped by strong consumer spending and a one-time surge in soybean exports.
Consumers have been largely responsible for keeping the economy moving ahead, as businesses have cut back on spending and investment and net exports have been weak. Tight-fisted federal, state and local budgets have also kept government spending in check.