US economy grew at 3.1 percent pace in third quarter.

(From Agence France Presse)

US economic growth, powered by hot demand for cars, accelerated to a 3.1 percent annual pace in the July-September quarter, the government said.

Growth picked up sharply from the second-quarter figure of 1.3 percent, the preliminary Commerce Department report showed, but was below most analysts' expectations.

Speculation mounted that the Federal Reserve may decide next week to cut interest rates -- already at a 40-year low -- but experts said it was a close call.

"It suggests the economy performed okay in the third quarter, largely on the back of the durable consumer demand," said Sal Guatieri, Chicago-based …