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US Economic Experiences Last Quarter Growth At 2.1%

The American economy has bubbled up in the last quarter of the year compared to previous report released last month by the Commercial Department.
According to U.S government, the economy expanded at a 2.1 percent rate.
Nearly all of the improvement was because of revised data on inventories, which showed businesses restocking shelves at a faster pace than the government first estimated. The improvement in inventory levels was offset by a slight downward revision in consumer spending last quarter.
Although well below the 3.9 percent pace of growth recorded in the spring, the economy’s advance was better than the initial 1.5 percent rate for the third quarter that the Commerce Department reported late last month.
Wall Street economists had been expecting the upward revision for gross domestic product, which is the second of three estimates for growth that the government will release. The final set of numbers will come out on Dec. 22.
For all of 2015, the rate of economic growth is expected to be about 2.5 percent, not much different from the 2.4 percent rate in 2014.
Annual rate of change in the gross domestic product, based on quarterly figures adjusted for inflation and seasonal fluctuations.
The tepid pace prompted Jan Hatzius, chief economist at Goldman Sachs, to call this the “tortoise recovery” in a recent note to clients. But that sobriquet does not mean the economy has been uniformly lackluster.
“While this expansion may go uncelebrated, growth in fact has been good enough to achieve a great deal of cumulative progress in the labor market,” he added. “We now expect that the U.S. economy will reach full employment within the next 12 months — the ‘tortoise recovery’ looks to be approaching the finishing line.”
As for the third quarter, the more refined inventory numbers provided a lift to growth, but they are likely to slow down reported economic activity in the current fourth quarter as manufacturers and retailers cut back on restocking of warehouses and backroom stores.
“The inventory revision was even bigger than we expected,” said Diane Swonk, chief economist at Mesirow Financial in Chicago.

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