U.S. economy grew at a 2.8% annual rate the last three months of 2011, falling short of expectations as spending by consumers, businesses and governments came in below economists' projections, the Commerce Department said.
That shows the economy snapping back from its early-2011 dip, while cuts in government spending and slower growth in private investment kept the economy's performance toward the low end of forecasts.
Americans spent more on cars and trucks, and companies built up their stockpiles. But growth in the October-December quarter — and all of 2011 — was held back by the biggest annual government spending cuts in four decades.
Adjusted for inflation, the Commerce Department's report on GDP says the economy grew just 1.7% last year, almost half of 2010's 3% growth.
The report falls short of the consensus forecast of USA TODAY's panel of 48 economists, whose median prediction was ...











Fri, Jan 27, 2012
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