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Growth In The US Economy Quickens In Fourth Quarter
BBC NEWS, BUSINESS
January 27, 2012: The pace of US economic growth jumped in the three months to December, according to new figures. The economy grew at an annualized rate of 2.8%, the Commerce Department said. This compares with an annual GDP rate of 1.8% in the previous quarter, and slightly lower than the 3% predicted by analysts.
The growth rate was the fastest in 18 months, helped by more businesses stockpiling goods, but pointed to a slower rate in the current quarter. However, sales grew at only 0.8%, compared with 3.2% in the previous quarter.
"The first estimate of fourth-quarter GDP with an increase of 2.8%, while the strongest since the third quarter of 2010, fell short of a 3.0% consensus," said David Sloan, an economist at IFR Economics. "The breakdown showed most of the growth coming from inventories, which reduces the need for further inventory gains in the current quarter."
David Watt, senior currency strategist, RBC Capital, said: "It's not that encouraging, but again, it's not going to affect the Fed. "They're downplaying the recent economic numbers anyway. This seems consistent with the Fed's view that the US economy is going to need all the help it can get to hit escape velocity in the next couple years."
