U.S. Economy Grows Unexpectedly In Q4 2010, But To Slow Down In 2011
The United States Commerce Department over the weekend released a new data showing that the country’s economy has improvement much quicker than expected in the last quarter of 2010.
A new data released by the U.S. Commerce Department over the weekend showed that the country’s economy grew more quickly in the fourth quarter of 2010 than earlier thought, but consumer and corporate spending were seen to likely slow down this year.
Based on the data, the government said that the U.S. gross domestic product (GDP), which measures the country’s economic growth, rose to an annual rate of 3.1 percent from the previously reported 2.8 percent.
The data also showed that the U.S. economy, as measured by the total goods and service output within its borders, grew by 2.9 percent for the entire 2010.
The government has attributed the stronger fourth quarter estimates to the higher consumer and business spending, as well as the accumulation of inventory during the period.
Business inventories, based on the data, increase to $16.2 billion from $7.1 billion reported last month. However, the figures remained lagging after a $121.4 billion rise in the third quarter.
But despite the stronger surge in the fourth quarter, the government forecasted a slow down in business and consumer spending as negative sentiments over the slow economic recovery add up to the high unemployment rate.
Also, the rising prices of fuel due to the unrest in the Middle East and North Africa might affect the figures for the next three quarters of 2011. But many analysts remained optimistic in the development, saying that all of these are temporary.