The US economy expanded at a faster rate than first believed. According to the US Commerce Department, the economy grew 5.9% in the fouth quarter of 2009, revised upwards from the previous estmate of 5.7%. This represented the biggest improvement in the economy for six years. However, this good news was offset by other, less encouraging, economic results. Unemployment data was worse than expected, showing an increase of 496,000 when seasonally adjusted. In addition, there was evidence that the recovery in the housing market is faltering with sales falling to the lowest level since June 2006, and consumption growth was revised down to 1.7% from the original 2% figure. Economists expressed their concern that the US market faces a double dip recession as the effects of the Government fiscal stimulus diminishes.
photo: The TruthAbout
