Real Gross Domestic Product (GDP) increased of 2.8 percent, according to information posted by Department of Commerce. This was up from the third quarter, when the economy growth reached 1.8 percent. However, it was lower than the 3 % estimate predicted by analysts.

The growing reflects that businesses are stockpiling goods they had produced, rather than selling them. Private businesses increased inventories $56 billion in the fourth quarter, following a decrease of $2 billion in the third quarter. Despite of the increasing numbers, analysts do not expect companies to continue in this condition, what will result in lower growth in current quarter.

Personal consumption expenditures picked up to 2.0 percent, compared with 1.7 percent in previous quarter. Large part of it was inflicted by rise in sales of new cars, which increased by 14.8% over the quarter.

The GDP price index decreased from 2.6 percent to 0.4 although the estimations presented 1.9 %. This shows that the level of prices of all new, domestically produced, final goods and services in U.S. economy largely declined during the fourth quarter, what could be reflected in decreasing of the new value of inflation.

The inflation rate in United States was last reported at 3 percent and the unemployment rate dropped to 8.5% in December - the lowest rate in nearly three years - from 8.7% the month before. The Fed believes the rate will reduce to 8.2% this year.

According to the World Economic Outlook Projections released by IMF, the U.S. economy growth targets to 1.8 percent in 2012, which is the same rate as was reached last year. Additionally, due to the differences of actual values ​​of macroeconomic indicators, which are lower than their estimates, and the continuing crisis in Europe, it can be expected that U.S. economic could grow at slower rate. 

 Zuzana Cepla

Photo: ISIFA