US economy grows by 5.7 per cent in Q4
US economy grows by 5.7 per cent in Q4
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By Michael Younger. |  |
Friday, 29, Jan 2010 06:35
By Alex Steger.
The US economy grew by 5.7 per cent in the fourth quarter of last year, official figures have revealed.
The growth, which smashed all expectations, is the quickest expansion of the US economy in the last six years.
Despite the expansion the country's gross domestic product (GDP), which measures total goods and services output within US borders, shrank by 2.4 per cent for the year 2009.
The overall shrinkage in GDP, confirmed by the US commerce department, represents the worst performance since 1946.
US stock indexes rose sharply in response to the release of the figures, with Dow Jones gaining 74 points on Friday and the Nasdaq futures market up 15.25 points.
A number of analysts had predicted US GDP would grow by around 4.7 per cent in the last three months of 2009. Other economists though were more optimistic and projected that output would see a stronger boost from firms re-stocking their inventories after months of aggressive liquidation.
The US bureau of economic analysis emphasised that the fourth-quarter advance estimate released today is based on source data and is incomplete and potentially subject to further revision.
The "second" estimate for the fourth quarter, based on more complete data, will be released on February 26th.
The markets had received an earlier boost when the US Senate confirmed on Thursday Ben Bernake would see out a second term as chairman of the US Federal Reserve. Uncertainty over the matter had put the markets off kilter over the past week.