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/8487611.stm
The article has changed 4 times. There is an RSS feed of changes available.
Version 2 | Version 3 |
---|---|
US growth reaches six-year high | US growth reaches six-year high |
(9 minutes later) | |
The US economy grew by an annualised rate of 5.7% between October and December, official figures have shown. | The US economy grew by an annualised rate of 5.7% between October and December, official figures have shown. |
The number, which is a first estimate, is a big rise from the previous quarter's growth rate of 2.2%. | The number, which is a first estimate, is a big rise from the previous quarter's growth rate of 2.2%. |
It suggests the country's economy is growing at its fastest pace for six years and confirms the US economy has left its year-long recession behind. | It suggests the country's economy is growing at its fastest pace for six years and confirms the US economy has left its year-long recession behind. |
But even with the rebound, gross domestic product (GDP) shrank by 2.4% across 2009 as a whole. | But even with the rebound, gross domestic product (GDP) shrank by 2.4% across 2009 as a whole. |
That was the worst annual performance since 1946. | That was the worst annual performance since 1946. |
'Encouraging news' | |
White House economist Christina Romer said the strong growth in the fourth quarter of 2009 was "the most positive news to date on the economy". | |
Wow, great number... when life support is removed we'll have a pulse Jack Ablin, chief investment officer, Harris Private Bank | Wow, great number... when life support is removed we'll have a pulse Jack Ablin, chief investment officer, Harris Private Bank |
"It is important not to read too much into a single report, positive or negative," she added. | |
"There will surely be bumps in the road ahead. Nonetheless, today's report is a welcome piece of encouraging news." | |
US GDP is expressed as an annualised rate, or annual pace, which shows what the three months' economic activity would mean if it carried on for a year. | |
The Bureau of Economic Analysis, which releases the data, emphasised that the fourth-quarter advance estimate was based on incomplete information and was subject to further revision. | The Bureau of Economic Analysis, which releases the data, emphasised that the fourth-quarter advance estimate was based on incomplete information and was subject to further revision. |
Growth in the third quarter was originally estimated at an annualised rate of 3.5%, but was revised down to 2.2% after more information was received. | Growth in the third quarter was originally estimated at an annualised rate of 3.5%, but was revised down to 2.2% after more information was received. |
Most of the growth came from increased manufacturing to rebuild inventories. Consumer spending - the biggest component of the US economy - was down on the previous quarter. | Most of the growth came from increased manufacturing to rebuild inventories. Consumer spending - the biggest component of the US economy - was down on the previous quarter. |
Great number? | Great number? |
That point was singled out by Manoj Ladwa, a senior trader at ETX Capital: "The 'engine of the economy' that is consumer spending contributed little to the overall improvement in the numbers, indicating the recovery may still falter." | That point was singled out by Manoj Ladwa, a senior trader at ETX Capital: "The 'engine of the economy' that is consumer spending contributed little to the overall improvement in the numbers, indicating the recovery may still falter." |
Others saw the news as more positive. Jack Ablin, the chief investment officer at Harris Private Bank in Chicago said: "Wow, great number. It's very solid and gives us a running start into the second half of the year when we can't rely on government stimulus. | Others saw the news as more positive. Jack Ablin, the chief investment officer at Harris Private Bank in Chicago said: "Wow, great number. It's very solid and gives us a running start into the second half of the year when we can't rely on government stimulus. |
"That's part of the plan, to get us moving as fast as possible, so when life support is removed we'll have a pulse." | "That's part of the plan, to get us moving as fast as possible, so when life support is removed we'll have a pulse." |