US economy resilient despite rising prices

The US economy has held up better than expected, as shoppers keep spending despite rising prices and higher borrowing costs.

The economy expanded at an annual rate of 2.6% in the three months ended in September, returning to growth after two quarters of decline.

The better-than-expected figure is one of the last major economic readings before US midterm elections next month.

Many analysts say the US is still on track for a slowdown next year.

In the most recent quarter, a surge in exports helped drive the growth, the Commerce Department said.

But analysts said that is unlikely to last as a strong dollar and weak global economy make it harder for US companies to sell abroad.

"There's more to it than just the headline number," said Andrew Patterson, international economist for investment company Vanguard.