Geithner says economy on the mend

By ANNE FLAHERTY Associated Press Writer

WASHINGTON (AP) - Treasury Secretary Timothy Geithner said he sees positive signs that the economy is recovering, although the recession remains "alive and acute" for families dealing with unemployment and facing home foreclosure.

In testimony before the House Financial Services Committee, Geithner said that Americans were saving much more and borrowing less from the rest of the world.

The economy grew at an annual rate of 3.5 percent in the third quarter of this year, the strongest rate of growth seen in two years.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

WASHINGTON (AP) - Treasury Secretary Timothy Geithner said he sees positive signs that the economy is recovering, although the recession remains "alive and acute" for families dealing with unemployment and facing home forceclosure.

In testimony before the House Financial Services Committee, Geithner said that Americans were saving much more and borrowing less from the rest of the world.

The economy grew at an annual rate of 3.5 percent in the third quarter of this year, the strongest rate of growth seen in two years.