Oct. 30--WASHINGTON -- After more than a year of contraction, the U.S. economy grew in the third quarter, signaling a possible end to the worst economic downturn since the Great Depression.

The 3.5 percent growth in the Gross Domestic Product was largely fueled by an increase in consumer spending, much of which could be attributed to government programs designed to spur the sales of cars and homes. Billions of dollars in federal spending as part of the economic stimulus package also likely contributed to the growth, economists say.

The numbers reported by the Commerce Department on Thursday don't necessarily mean the economy is doing well. The nation's unemployment rate, which reached a record 9.8 percent last month, is expected to remain high for at least another year. And many economists predict that the economic gains linked to government programs could soon start to wane.

But White House officials hailed the third-quarter numbers, saying that, without the stimulus package and other government intervention, the GDP likely would have risen little, if at all.

Republicans, however, argued that massive federal spending had done nothing to boost jobs while adding billions to the national debt.

Amid a tense political backdrop, White House officials and members of Congress say they are continuing to look for ways to help spur job creation. Among the measures being discussed: a possible extension of unemployment benefits, additional federal aid to states, middle-class tax cuts and more federal spending on infrastructure projects.

Rep. David Obey, a Wausau Democrat who chairs the powerful House Appropriations Committee, said Congress needs to find new ways to help put more people back to work.

"I see little evidence that the private economy is strong enough, without further government action, to sustain this welcome news," he said.

Speaking to a group of small-business owners Thursday, President Barack Obama said the Commerce Department report was an "affirmation that this recession is abating and the steps we've taken have made a difference." But he also noted that there is a long way to go before the economy is fully restored.

"The benchmark I use to measure the strength of our economy is not just whether our GDP is growing, but whether we are creating jobs, whether families are having an easier time paying their bills, whether our businesses are hiring and doing well," Obama said.

Glimmers of hope in state

In Wisconsin, a number of companies are seeing glimmers of hope.