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US growth outshines UK
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27 January 2012
The US put the shrinking British economy firmly in the shade during the final three months of 2011 as the global powerhouse grew at its fastest pace for a year and a half.
The world's biggest economy expanded at an annual pace of 2.8% between October and December - short of analysts' hopes of 3% but still a marked acceleration from the 1.8% seen in the third quarter.
The latest figures threw the woeful performance of the UK's own spluttering recovery into sharp relief after official estimates revealed a 0.2% decline during the same period this week.
President Obama's stimulus measures last autumn are likely to have helped growth although the American jobs market is still weak and the US Federal Reserve expects to keep interest rates close to zero until the end of 2014. Analysts flagged up warning signs such as weaker consumer spending and a big build-up of stockpiles, which could herald a slowdown in the first quarter.
ING Bank's chief international economist, Rob Carnell, said: "We might well get something closer to the 2% mark than 3%."
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