Economic growth likely slowing after year-end leap

February 27, 2010

WASHINGTON - The economy is now likely expanding at just half the brisk 5.9 percent pace at which the government on Friday estimated it grew last quarter. Business spending will make up for some of a slowdown in consumer spending - but not likely enough to reduce the jobless rate much. In a fresh reading on the nation's economic standing, the Commerce Department bumped up its growth estimate for the final quarter of 2009, from a 5.7 percent growth rate estimated a month ago. It was the strongest showing in six years. About two-thirds of the growth in the gross domestic product came from a burst of manufacturing - but not because consumer demand was especially strong. In fact, consumer spending weakened at the end of the year, even more than the government first thought. Instead, factories were churning out goods for businesses that had let their stockpiles dwindle to save cash.

- Associated Press


Baltimore Sun Articles
|
|
|
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.