The U.S. economy grew at a 2 percent annual rate in the third quarter as consumer spending climbed the most in almost four years, a sign the expansion is developing staying power.

Commerce Department figures showed today in Washington. Household purchases, about 70 percent of the economy, rose at a 2.6 percent pace, the best quarter of the recovery that began in June 2009.

The figures, the last economy-wide gauge before voters head to the polls on Nov. 2, show growth remains short of what’s needed to cut a jobless rate stuck near 10 percent. The report also indicated inflation cooled as retailers like Wal-Mart Stores Inc. cut prices, one reason why Federal Reserve policy makers next week may pump more money into the world’s largest economy.

“Consumer spending looks considerably better,” Jim O’Sullivan, chief economist at MF Global Ltd. in New York, said before the report. At the same time, “it’s pretty clear the Fed will do more as they’re trying to get above-trend growth to reduce the unemployment rate.”

Canada’s economy rebound with 0.3% growth in August, led by the energy and manufacturing sectors, Statistics Canada said Friday.

The growth was in line with economists’ forecasts for the month, after gross domestic product declined 0.1% the previous month.

“Oil and gas extraction, wholesale trade and manufacturing were the main sources of growth in August,” the federal agency said. “Increases were also recorded in the finance and insurance sector, by real estate agents and brokers, in construction and retail trade. Utilities and forestry decreased while public sector output was unchanged.”

After an initially strong rebound from the recession, the Canadian economy has been struggling to regain that pace amid a weaker housing market and an uncertain outlook for the U.S. economy — Canada’s biggest trading partner.

The Bank of Canada has dramatically revised down its growth outlook for the country, forecasting 3% growth this year and 2.3% in 2011, versus previous expectations for advances of 3.5% and 2.9%, respectively.

The central bank has also put further increases in its key interest on hold in an effort to encourage spending.