The U.S. economy grew at a 3.2% rate last quarter, reaching a pace economists expect to be maintained through the year - but only if consumer spending remains strong.
The U.S. Commerce Department's advance estimate of gross domestic product (GDP) cited consumer spending and rising exports as key drivers of the economy's growth. A sharp slowdown in inventories stunted the increase. Excluding stockpiles, GDP grew at a 7.1% pace - its biggest increase since 1984.
U.S. GDP growth for all of 2010 grew by 2.9%, the biggest increase in five years. Last year's growth turned around 2009's struggling economy, which shrunk by 2.6%.
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Continued U.S. GDP Growth Will Require Strong Consumer Spending
Consumer Spending Will Be the Key to Continued U.S. GDP Growth
The U.S. economy grew at a 3.2% rate last quarter, reaching a pace economists expect to be maintained through the year - but only if consumer spending remains strong.
The U.S. Commerce Department's advance estimate of gross domestic product (GDP) cited consumer spending and rising exports as key drivers of the economy's growth. A sharp slowdown in inventories stunted the increase. Excluding stockpiles, GDP grew at a 7.1% pace - its biggest increase since 1984.
U.S. GDP growth for all of 2010 grew by 2.9%, the biggest increase in five years. Last year's growth turned around 2009's struggling economy, which shrunk by 2.6%.
"The consumer really drove the economy in the fourth quarter," Guy LeBas, chief fixed-income strategist at Janney Montgomery Scott LLC, told Bloomberg News. "The economy has moved beyond recovery to a stable state of growth."
The U.S. Commerce Department's advance estimate of gross domestic product (GDP) cited consumer spending and rising exports as key drivers of the economy's growth. A sharp slowdown in inventories stunted the increase. Excluding stockpiles, GDP grew at a 7.1% pace - its biggest increase since 1984.
U.S. GDP growth for all of 2010 grew by 2.9%, the biggest increase in five years. Last year's growth turned around 2009's struggling economy, which shrunk by 2.6%.
"The consumer really drove the economy in the fourth quarter," Guy LeBas, chief fixed-income strategist at Janney Montgomery Scott LLC, told Bloomberg News. "The economy has moved beyond recovery to a stable state of growth."