US economy took extra spurt at '79 year-end

The US economy, shrugging off predictions of a recession, showed more strength during the October-December quarter than previously believed, the government announced Wednesday.

The Commerce Department said the gross national product -- the value of all goods and services produced by Americans -- rose at a 2.1 percent annual rate during last year's fourth quarter, to $2.46 trillion.

The Commerce Department originally announced last month that the fourth-quarter growth rate was 1.4 percent. The estimate was revised Wednesday, based on more complete information.

According to the new report, three categories were revised upward to account for the overall higher estimate.

Business investment was $3.9 billion above the previous estimate, federal government purchases were $1.4 billion higher, and personal consumption expenditures were $800 million ahead of last month's estimate.

The revised fourth-quarter performance means that overall 1979 growth -- from the fourth quarter of 1978 to the fourth quarter of 1979 -- was 1 percent, compared with the previous estimate of 0.8 percent.

The Commerce Department report also said that inflation, as measured by the so-called "explicit price deflator," rose at an 8.7 percent annual rate during the October-December period, compared with 8.5 percent in the third quarter.

About these ads
Sponsored Content by LockerDome

We want to hear, did we miss an angle we should have covered? Should we come back to this topic? Or just give us a rating for this story. We want to hear from you.

Loading...

Loading...

Loading...

Save for later

Save
Cancel

Saved ( of items)

This item has been saved to read later from any device.
Access saved items through your user name at the top of the page.

View Saved Items

OK

Failed to save

You reached the limit of 20 saved items.
Please visit following link to manage you saved items.

View Saved Items

OK

Failed to save

You have already saved this item.

View Saved Items

OK