Two sets of figures released recently indicate that the US economy is continuing to recover from the recession.
A solid 3.2 percent annualized growth rate for GDP in Q4, up from 2.6 percent in Q3, rounded off the US economy's best year for five years in 2010, expanding 2.9 percent over the year as a whole.
"The acceleration of US GDP in Q4, and the changing composition of growth, raises hope that the economic recovery will move into a more self-sustaining phase in 2011 and generate sufficient jobs to reduce unemployment,” said Chris Williamson of financial information services firm Markit.
"With final sales rising at the fastest pace since 1984 in the final three months of the year, the US also looks well positioned to achieve strong growth again this year. Importantly, domestic demand appears to be providing a boost to growth alongside exports, taking over from inventory building, which had previously been a key - but only temporary - driver of the economy.
"The US is expected to be one of the fastest growing developed countries in 2011,” he continued, “largely reflecting the contrast of the ongoing stimulus with other countries such as the UK and other heavily indebted European nations, where austerity measures designed to reduce deficits are stifling domestic demand.
"The main concern is that growth could remain too weak to stimulate a sufficiently high rate of job creation to reduce stubbornly high unemployment, but the recent GDP data at least take a step in the right direction of raising hopes that talk of a jobless recovery may prove misplaced in 2011."
Separate figures released yesterday by the Commerce Department reinforce Williamson’s view, with consumer spending in the US growing by 3.5 percent from 2009, its fastest rate of growth in three years.
Consumer spending makes up more than two-thirds of activity in the US, the world's largest economy.
