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The Department the of Commerce the United States, announced yesterday that the United States economy grew in the fourth quarter of 2010 by a lower monthly rate than predicted by early estimates and economists’ predictions, with America's GDP expanding in the fourth quarter by an annualized rate of 2.8%, as opposed to the 3.2% rate predicted last months. We note that through 2010 the world's largest economy grew by 2.8% - the highest growth rate in five years – after a 2.6% decline in the GDP for 2009.
Private consumption in the United States grew by 4.1% in the fourth quarter, the sharpest rise in five years. That said, the climb was slightly lower than the 4.2% climb predicted by economists. The PCE-based consumer price index grew at an annualized rate of 0.5% when discounting the prices of energy and food.
Further in the American macroeconomic sector, the University of Michigan's consumer confidence index rose in February to a level of 77.5 points, its highest level since January 2008, as compared to the previous reading of 74.2 points. Analysts' prediction was of a more moderate climb to a level of 75.4 points.
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