Q4 GDP Growth = 3.2%

The Commerce Department reported this morning that the U.S. economy expanded by 3.2% in real terms for the fourth quarter of 2010. In my opinion, this was another disappointing number. Economists were expecting growth of 3.5%.

There are, however, some promising details in the report. For example, consumer spending, which represents about 70% of the economy, rose by 4.4%. That’s the fastest rate in five years. Final sales rose by 7.1% which is its fastest rate since 1984.

For the last five years, real GDP growth has been 2.67%, 1.95%, 0.00%, -2.63% and 2.86%. Real GDP for the fourth quarter of 2010 finally surpassed the peak quarter of real GDP from the fourth quarter of 2007, albeit very narrowly. In three years’ time, the economy has expanded by a grand total of 0.14%.

Posted by on January 28th, 2011 at 9:40 am

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