Oct. 29 (Bloomberg) -- Massey Energy Co., the fifth-largest U.S. coal company, led the industry higher after a report showed the economy grew for the first time in more than a year, signaling demand may rebound.

Massey jumped $1.88, or 6.6 percent, to $30.54 in New York Stock Exchange composite trading. Peabody Energy Corp., the biggest U.S. coal company, gained $2.04, or 5.2 percent, to $41.68. Arch Coal Inc., the second-biggest, rose $1.09, or 5 percent, to $23.10.

“Today with the GDP number, people are feeling more positive again,” said Meredith Bandy, an analyst at BMO Capital Markets in Denver. “With thermal stockpiles at utilities high, you need the economy to pick up and a cold winter. You need a lot of things working for you to get those stockpiles down.”

The U.S. economy expanded at a 3.5 percent pace from July through September, after shrinking the previous four quarters, figures from the Commerce Department showed today in Washington. Household purchases climbed 3.4 percent, the most in more than two years.

Walter Energy Inc., a producer of coal from mines in southern Appalachia for use in steelmaking, advanced $3.52, or 6.1 percent, to $61.55. Consol Energy Inc., the fourth-largest coal company, added $2.01, or 4.6 percent, to $45.81. Alpha Natural Resources Inc., the third-biggest U.S. coal company, climbed $2.60, or 7.8 percent, to $36.04. Patriot Coal Corp., the fourth-largest eastern U.S. coal producer, rose 26 cents, or 2.2 percent, to $12.19.

The U.S., which holds the world’s largest reserves of coal, relies on the fuel for about half of its power generation, compared with about 20 percent for natural gas.

To contact the reporters on this story: Mario Parker in Chicago at mparker22@bloomberg.net;

Last Updated: October 29, 2009 16:40 EDT