Stronger consumer spending helped the US economy to grow at a faster annualized pace of 3.2 percent in the last quarter of 2010. The numbers released by the Bureau of Economic Analysis showed growth accelerated significantly from 2.6 percent – recorded in the third quarter. However, growth rate fell short of economist’s expectation of 3.6 percent.
The fourth quarter growth was mainly driven by the spike in household expenditure. The growth rate for household expenditure was recorded at 4.4 percent, nearly twice of third quarter.
Gross Domestic Product (GDP) also grew as non-residential investments jumped, exports rose and imports fell.
However, government spending for the quarter was lower by 0.2 percent and Federal spending growth was recorded at 8.8 percent.
The government said although economic recovery was continuing, it was not strong enough to make a dent in the unemployment scenario.