According to a report released by the commerce department on Friday, U. S. economy reported better recovery, at a slightly faster pace than previously assumed during the third quarter of the year ended December 2009.

The nation's gross domestic product grew at an annual rate of 5.9% in the quarter beating the expectations of Government of 5.7%. GDP is the broadest measure of the nation's economic activity. The growth in the GDP gives the assumption that the U. S. economy has pulled out of the deepest downturn since the Great Depression.

This is reported as the best improvement for the U. S. economy in more than six years. The growth in the GDP also reflects stronger business investment and a greater contribution from inventories.

The annualized growth in GDP was reported 2.2% in the third quarter while in the first quarter GDP was reported lower by 6.4% and in the second quarter it declined by 0.7%.

According to the report, the manufacturing sector was reported as the strongest sector in the economy, helped by global trade and the inventory cycle. In the third quarter, the consumer spending increased at a 1.7% annual rate.

Business investment increased at a 6.5% annual rate, investments in equipment and software increased at an 18.2% annual rate, investments in homes increased at a 5% annual rate. The exports of goods increased at a 22.4% annual rate, the best in 13 years. However, direct government spending declined at a 1.2% annual rate.