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Posted January 29, 2010
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Portland, Oregon
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This iReport is part of an assignment:
State of the Union 2010 |
Best economic growth in six years
From http://money.cnn.com/2010/01/29/news/economy/gdp/index.htm?hpt=T2
NEW YORK (CNNMoney.com) -- The U.S. economy grew at the fastest pace in more than six years during the fourth quarter of 2009, according to a government report Friday.
The nation's gross domestic product, the broadest measure of economic activity, rose at a 5.7% annual rate in the fourth quarter. That was much stronger than expected and provides another sign that a recovery in the economy is taking hold.
Economists surveyed by Briefing.com had forecast growth of 4.7%.
The growth in the fourth quarter was the highest since the third quarter of 2003. The economy rose at 2.2% annual pace in the third quarter of last year.
Much of the improvement was driven by a turnaround in inventories, the supply of goods that businesses produce in anticipation of sales. Businesses slashed inventories in late 2008 and early 2009 due to concerns about worsening economic conditions.
But 3.4 percentage points of growth in the fourth quarter came from the change in inventories, according to Friday's report. A pickup in auto production was a significant part of the inventory turnaround, even though auto sales themselves only rose modestly.
An 18% jump in the value of exports also played a major role in the economy's rebound, contributing nearly 2 percentage points of growth.
But the U.S. consumer was somewhat of a bystander in the fourth quarter, as personal consumption grew at only a 2% annual rate in the period. Spending by consumers accounts for more than two-thirds of economic activity.
GDP growth best in 6 years.... it seems something's working, whether it be the stimulus package or somethign else. Now, if unemployment shifts within the year, lowers into the single digits, what are those who have chosen to be detractors say then?
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