The U.S. economy surged at the end of 2009, a bigger-than-expected gain driven more by slower inventory liquidation than by consumer spending.
Gross domestic product rose a seasonally adjusted 5.7% annual rate October through December, the Commerce Department said Friday in its first estimate of fourth-quarter GDP.
Don’t read too much into this though:
“Household spending is expanding at a moderate rate but remains constrained by a weak labor market, modest income growth, lower housing wealth, and tight credit,” the Federal Open Market Committee of policymakers said this week.
Not to say that this is not good news. Obviously, strong growth stats are great when compared to a year of the economy contracting. We should all be wary of over-celebrating two digits meant to estimate the aggregate activity of the world’s largest economy. Undoubtedly, this will appear in papers across the country and around the world this week. The WSJ does a good job of laying out what factors composed the growth and how those changed from last year or last quarter.
Here’s to hoping 2010 turns things around!








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