As has been confirmed by official figures posted, the American economy actually managed to expand in the current fiscal year's third-quarter, albeit at a slower pace than what had been expected by economists and analysts, on the back of companies cutting back on spending and inventories at a much faster pace,

For the July-September period for the year, the economy recorded a 2.2% growth in Gross Domestic Production, as compared to the 2.8% expansion that was previously reported by the Commerce Department in Washington.

It is now being expected that an improvement in consumer spending, fused together with a record decline in stockpiles for the current year, will nudge the increases in production, which might all contribute to keeping the world's largest economy just about alright over the next year.

"We are really starting to see the mechanisms for a sustained recovery come into place. We are starting to see investment numbers come back", said Robert Dye, a Senior Economist at PNC Financial Services Group in Pittsburgh.

Analysts believe that for the October-December quarter, the American economy will manage to grow about 4%, and if they are right, this will mark the strongest growth recorded since the 5.4% GDP expansion that was registered for 2006's first quarter.