This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/8331497.stm
The article has changed 20 times. There is an RSS feed of changes available.
| Version 14 | Version 15 |
|---|---|
| US economy is growing once again | US economy is growing once again |
| (10 minutes later) | |
| The US economy grew at an annual pace of 3.5% between July and September, its first expansion in more than a year. | The US economy grew at an annual pace of 3.5% between July and September, its first expansion in more than a year. |
| The growth was helped by a substantial government spending plan, including a scrappage scheme to boost car sales. | The growth was helped by a substantial government spending plan, including a scrappage scheme to boost car sales. |
| The official figures indicate recession has ended, but some economists think there could be further setbacks. | The official figures indicate recession has ended, but some economists think there could be further setbacks. |
| President Obama said while "welcome news", the US was still a "long way" from recovering from the "deepest downturn since the Great Depression". | President Obama said while "welcome news", the US was still a "long way" from recovering from the "deepest downturn since the Great Depression". |
| "This is affirmation that this recession is abating and the steps we've taken have made a difference, but I also know that we've got a long way to go to fully restore our economy." | "This is affirmation that this recession is abating and the steps we've taken have made a difference, but I also know that we've got a long way to go to fully restore our economy." |
| Mr Obama said there were other benchmarks for measuring economic progress, such as "whether we are creating jobs, whether families are able to pay their bills and whether businesses are hiring and doing well." | Mr Obama said there were other benchmarks for measuring economic progress, such as "whether we are creating jobs, whether families are able to pay their bills and whether businesses are hiring and doing well." |
| Compared with the previous three months, the US economy grew by 0.9%. In the same period, and on the same measure, the UK economy unexpectedly stayed in recession after it shrank by 0.4%. | Compared with the previous three months, the US economy grew by 0.9%. In the same period, and on the same measure, the UK economy unexpectedly stayed in recession after it shrank by 0.4%. |
| Japan, China, Germany and France have recently climbed out of recession. | Japan, China, Germany and France have recently climbed out of recession. |
| ANALYSIS By Michelle Fleury, New York business reporter | ANALYSIS By Michelle Fleury, New York business reporter |
| The US, the world's economic powerhouse, joins Japan, China, Germany and France as the leading economies that have emerged from recession. | The US, the world's economic powerhouse, joins Japan, China, Germany and France as the leading economies that have emerged from recession. |
| While economists may be celebrating, it is too soon for the rest of us. The recent weakness of the dollar won't help Americans buy goods from the rest of the world and with the unemployment rate in the US currently at 9.8%, life is still very hard. | While economists may be celebrating, it is too soon for the rest of us. The recent weakness of the dollar won't help Americans buy goods from the rest of the world and with the unemployment rate in the US currently at 9.8%, life is still very hard. |
| Government schemes such as the "cash for clunkers" programme helped consumers and manufacturers but given the weakness of the last retail sales data, shoppers are still limiting their spending. | Government schemes such as the "cash for clunkers" programme helped consumers and manufacturers but given the weakness of the last retail sales data, shoppers are still limiting their spending. |
| All the same, this GDP reading is a milestone regardless of how fragile the recovery is. Pain continues for some Mardell: Where only hope is left Head to head: What next for US economy? | All the same, this GDP reading is a milestone regardless of how fragile the recovery is. Pain continues for some Mardell: Where only hope is left Head to head: What next for US economy? |
| Global good news | Global good news |
| BBC chief economics correspondent Hugh Pym said the 3.5% annualised growth rate - which takes the change over a three-month period and works out what it would be if it continued over a year - was better than had been expected by most commentators. | BBC chief economics correspondent Hugh Pym said the 3.5% annualised growth rate - which takes the change over a three-month period and works out what it would be if it continued over a year - was better than had been expected by most commentators. |
| "The sheer scale of the stimulus in the US has made a big difference, it was much bigger in percentage terms than that in the UK," he said. | "The sheer scale of the stimulus in the US has made a big difference, it was much bigger in percentage terms than that in the UK," he said. |
| It is the first time the US economy has expanded since the second quarter of 2008, when it grew at an annual pace of 2.4%. | It is the first time the US economy has expanded since the second quarter of 2008, when it grew at an annual pace of 2.4%. |
| US Treasury Secretary Timothy Geithner stressed times were still hard for millions. | US Treasury Secretary Timothy Geithner stressed times were still hard for millions. |
| "Unemployment remains unacceptably high for every person out of work, for every family facing foreclosure, for every small business facing a credit crunch, the recession remains alive and acute," he said. | "Unemployment remains unacceptably high for every person out of work, for every family facing foreclosure, for every small business facing a credit crunch, the recession remains alive and acute," he said. |
| Official confirmation of whether the US is in or out of recession will come from the National Bureau of Economic Research, the agency which considers a number of factors in coming to its decision. | Official confirmation of whether the US is in or out of recession will come from the National Bureau of Economic Research, the agency which considers a number of factors in coming to its decision. |
| Numerous boosts | Numerous boosts |
| The figures from the Commerce Department showed that a number of factors helped to lift the economy during the third quarter. | The figures from the Commerce Department showed that a number of factors helped to lift the economy during the third quarter. |
| HAVE YOUR SAY There can be no genuine recovery, where there are no jobs. We continue to lose jobs, and none are being createdRick McDaniel, Lewisville, TX USA Send us your comments | |
| Spending on durable manufactured products soared at an annualised rate of 22.3%, the highest quarterly amount since 2001, led primarily by the impact of the cash for clunkers scheme lifting car sales. | Spending on durable manufactured products soared at an annualised rate of 22.3%, the highest quarterly amount since 2001, led primarily by the impact of the cash for clunkers scheme lifting car sales. |
| The housing market also improved, with spending on housing products up 23.4%, its largest quarterly jump in 23 years. | The housing market also improved, with spending on housing products up 23.4%, its largest quarterly jump in 23 years. |
| Analysts said this big leap was sparked by the government's $8,000 tax credit for first-time house buyers. | Analysts said this big leap was sparked by the government's $8,000 tax credit for first-time house buyers. |
| Meanwhile, total government spending was up 7.9%, as the wider stimulus spending continued to take effect. | Meanwhile, total government spending was up 7.9%, as the wider stimulus spending continued to take effect. |
| In addition, exports were also up strongly, increasing 21.4%, the biggest rise since 1996. | In addition, exports were also up strongly, increasing 21.4%, the biggest rise since 1996. |
| 'Distorted by stimulus' | 'Distorted by stimulus' |
| "It's good to have the economy growing again," said Brian Bethune, economist at IHS Global Insight. | "It's good to have the economy growing again," said Brian Bethune, economist at IHS Global Insight. |
| "But we don't think that rate of growth is sustainable because it is distorted by all the government stimulus. | "But we don't think that rate of growth is sustainable because it is distorted by all the government stimulus. |
| "The challenge here is to get organic growth - growth that isn't helped by fiscal steroids." | "The challenge here is to get organic growth - growth that isn't helped by fiscal steroids." |
| Analysts cautious about the slow nature of the US economic recovery point to the fact that the unemployment rate currently stands at 9.8%, and that the labour market traditionally lags behind any wider economic recovery. | Analysts cautious about the slow nature of the US economic recovery point to the fact that the unemployment rate currently stands at 9.8%, and that the labour market traditionally lags behind any wider economic recovery. |
| They also highlight the fact that the big car firms have already reported a sharp fall in September sales following the conclusion of the popular $3bn cash for clunkers scheme at the end of August. | They also highlight the fact that the big car firms have already reported a sharp fall in September sales following the conclusion of the popular $3bn cash for clunkers scheme at the end of August. |
| "You can say that the recession is over, but it sure won't feel like that," said Dean Baker, co-director of the Centre for Economic Policy Research. | "You can say that the recession is over, but it sure won't feel like that," said Dean Baker, co-director of the Centre for Economic Policy Research. |
| "There is a lot of downward momentum that isn't going to go." | "There is a lot of downward momentum that isn't going to go." |