The US economy grew twice as fast as expected in the last three months of 2002, according to revised figures published today. US GDP expanded at a 1.4pc annualised rate in the fourth quarter, the Commerce Department said, better than the 0.7pc rate reported last month. Economists had expected the figure to be revised up to 1.1pc. However, the Q4 figure still represents a sharp slowdown from the 4.0pc growth recorded in the third quarter.
The revision was in part due to higher than expected consumer spending, which grew at a 1.5pc annual rate, up from an initial 1.0pc, but down from 4.2pc in the third quarter. Consumer spending, which accounts for two thirds of the economy, has slowed in the past year amid concern over a possible war with Iraq and rising unemployment. For all of 2002, the US economy grew at a 2.4pc rate, compared with an annual increase of 0.3pc in 2001. This is well below its potential growth rate of 3.5pc. //www.fxcentre.com/