The past week of tumbling stocks and dire employment reports led many analysts and investors to doubt the stability and speed of the recovery. New reports; however, indicate the economy grew faster than anticipated in the fourth quarter.
Calculations indicate the economy expanded at its quickest pace since 2003, reaching a 5.7 percent annual growth rate. Still all the recent set backs and companies pausing to reconfigure business will put something of a fork in the road for the economy.
Even bearing this in mind, the higher than predicted growth rate is the most convincing figure yet in support of claims the recession ending at the close of 2009.
Two consecutive quarter of expansion are helping to revive the record breaking four quarters of decline. The positive figures masquerade as more significant than they might have been though as the fourth quarter improvements were largely the result of corporations replenishing exhausted stockpiles, a practice that will be discontinues within the year.
The numbers have not convinced everyone that the recovery is not anemic as much of the improvements were the result of business purchases and not consumer spending.
About EQUITIES:
Since 1951, EQUITIES Magazine has been a leading media company providing business editorial content designed to serve the needs of business leaders, professionals, institutional investors and retail investors. We are focused on business and the business of making money, not on lifestyle subjects. We publish original reporting in print and on our website, as well as select content at www.nasdaq.com. For 28 years we have hosted our own branded investor conferences that connect public company CEO’s with our loyal readers in the investment community.
Sign up for a free one-year subscription
