US Economy Grows At The Fastest Pace In Six Years
The US economy grew at 5.7% in the fourth quarter - the fastest pace in more than six years. The growth was driven by a less aggressive reduction in inventories by businesses, according to the Commerce Department.
Nigel Gault, Chief US Economist from IHS Global Insight, said that businesses and the government saw much slower sequential growth, if net exports and actual final spending by US consumers are excluded. Similar observations were made by several analysts, including Tom Porcelli of RBC Capital Markets and Carl Lantz of Credit Suisse.
Consumer spending, which accounts for roughly 70% of the economy, rose 2%, as compared to 2.8% growth seen a quarter earlier. The growth exceeded the projection of a 1.8% gain. The rest of the contribution (3.4 percentage points) to the GDP came from the efforts made to rebuild depleted inventories.
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Posted-In: Carl Lantz Credit Suisse GDP IHS Global Insight Nigel Gault RBC Capital MarketsEconomics Markets