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US Growth Quickens In 4Q10
Economic growth in the U.S. accelerated in the closing three months of 2010 as increased consumer spending and exports drove the recovery to a healthy start to the New Year.
Economic growth in the U.S. accelerated in the closing three months of 2010 as increased consumer spending and exports drove the recovery to a healthy start to the New Year, according to The Wall Street Journal. On Friday, the Commerce Department reported that gross domestic product in the U.S. rose by an inflation-adjusted annual rate of 3.2% in the fourth quarter of 2010, which was just short of economists expectations but represented a pickup from the 2.6% growth recorded in the previous three month period.
The gain was driven by a 4.4% increase in consumer spending, marking the fastest quarterly increase since the start of 2006. The growth data also received a boost from international trade, with the U.S. recording a trade surplus for the first time in 2010 during the fourth quarter, as higher exports led net trade to a 3.44% contribution to GDP. Economists reacted positively to report despite the disappointing headline figure, with Fred Dickson of The Davidson Co. summarizing, The conclusion is the economy appears to be self-sustaining, adding that the economy will likely use the fourth quarter expansion as a good jumping off point for further growth this quarter.
Click here to read the story from The Wall Street Journal.
Click here for coverage of economists' reactions from Reuters.