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BBC chief economics correspondent Hugh Pym said the 3.5% annualised growth rate was better than had been expected by most commentators.

“The sheer scale of the stimulus in the US has made a big difference, it was much bigger in percentage terms than that in the UK,” he said.

It is the first time US economy has last expanded since the second quarter of 2008, when it grew at an annual pace of 2.4%.

US Treasury Secretary Timothy Geithner stressed times were still hard for millions.

“Unemployment remains unacceptably high for every person out of work, for every family facing foreclosure, for every small business facing a credit crunch, the recession remains alive and acute,” he said.

Official confirmation of whether the US is in or out of recession will come from the National Bureau of Economic Research, the agency which considers a number of factors in coming to its decision.

Numerous boosts

The figures from the Commerce Department showed that a number of factors helped to lift the economy during the third quarter.

Spending on durable manufactured products soared at an annualised rate of 22.3%, the highest quarterly amount since 2001, led primarily by the impact of the cash for clunkers scheme lifting car sales.

The housing market also improved, with spending on housing products up 23.4%, its largest quarterly jump in 23 years.

Analysts said this big leap was sparked by the government’s $8,000 tax credit for first-time house buyers.

Meanwhile, total government spending was up 7.9%, as the wider stimulus spending continued to take effect.

In addition, exports were also up strongly, increasing 21.4%, the biggest rise since 1996.