Economic growth in the final quarter of 2009 was marginally less dramatic than earlier reports had indicated, a government announcement revealed on Friday. Despite this a spike in corporate profit for the final months of the year prompted hope optimism that businesses may begin to consider new hires.
It had been reported that the gross domestic product, or the overall value of services and goods rose 5.9 percent in the final quarter. After recalculating the figures, the Commerce Department discovered growth had been 5.6 percent for the period between October and December.
5.6 percent, though lower than originally determined is still the highest growth rate experienced in over six year for the nation. The climb is too dramatic to remain consistent economists fear, predicting much slower growth rates for upcoming quarters as the nation continues to struggle with rampant unemployment and weak housing markets.
The commerce report was not all bad news, in addition to the revised growth rate, the document revealed that after-tax corporate profit, considered a good indicator of business spending, increased by 6.5 percent in the final quarter of last year. If this trend continues, new hiring may begin sooner than many predicted.
Business spending slipped beneath expectation, rising 5.3 percent rather than the 6.5 percent initially forecast, largely due to continued weakening in commercial real estate. Spending slid 18 rather than the forecast 13.9 percent for the sector.
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
