US consumers struggling with debt may be relieved to know that the economy grew by 3.3 per cent in the second quarter of the year.

Annual growth figures from the Commerce Department were revised upward from a previous estimate of 1.9 per cent.

Economists put the rise down to increased consumer spending - which has been spurred on by government tax rebates - and claim a recession is now less likely.

"This is still an economy that faces slow times but not a recession," Avery Shenfeld, senior economist at CIBC World Markets, told AFP.

Such comments may come as good news to those with large amounts of debt who are struggling to meet day to day living costs.

However, analysts are warning that economic difficulties are not over yet, as the property market remains under pressure and unemployment is still rising.

In terms of inflation, the Federal Reserve has warned that the outlook is "highly uncertain".

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