US economic growth reviewed for third quarter
The US economy increased at an annualised rate of 2.6% in 2010’s third quarter, which was slightly faster than previous estimates of 2.5%, according to new figures.
However, the new rate was lower than was expected, with many analysts expecting something closer to 3%. Earlier in December, the US Federal Reserve explained that the US recovery was too slow to help bring down America’s high and worrying rates of unemployment.
Separately however, figures show that home sales will continue to recover. Sales of homes increased by 5.6% last compared with October, to seasonally adjusted rates of 4.68 million last month, according to the US’ National Association of Realtors. Despite this, the increase was again less than analysts previously hoped for, as overall sales were down to 27.9% from 2009.
The GDP data provided from the Commerce Department show that the 2010 third-quarter growth rate had to be revised after an increment in the pace of US businesses that are building up inventories. However, the increase was offset by downward revisions to consumer spending, which continued to grow at a yearly pace of 2.4%, down from previous estimates of 2.8%. As it accounts or around 70% of the American economy’s total economic output, consumer spending is always closely watched.
Earlier this month, figures released by the American government showed that the country’s unemployment rate has risen to 9.8% of the total working population, its highest recorded rate since April.