White House says economy faces serious challenges

WASHINGTON, Oct 30 (Reuters) - The U.S. economy is facing "serious challenges" but is positioned to bounce back, White House spokeswoman Dana Perino said on Thursday after a new report showed the economy shrank in the third quarter.

"Today's GDP report is weak, but it is not unexpected," Perino said in a statement. "A number of things contributed to the slowing economy in the third quarter -- record high energy prices, housing and credit concerns, two major hurricanes, and a prolonged Boeing strike."

The Commerce Department said the third-quarter contraction, 0.3 percent, in gross domestic product was the steepest since the corresponding quarter in 2001 though it was slightly less than the 0.5 percent rate of reduction that Wall Street economists surveyed by Reuters had forecast.

Perino said the Bush administration is taking action aimed at restoring economic growth and job creation "by early next year."

"While we continue to face serious challenges, the United States remains the best place to do business, and we're positioned to bounce back," she said. (Reporting by Jeremy Pelofsky; Editing by Theodore d'Afflisio)