US growth outshines UK - Business News - Business - Evening Standard
       

US growth outshines UK

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%."

Comments

Don't Miss
The bottom line: the rise of BDSM in London

The bottom line

The rise of BDSM in London
The Scissor Sisters are back ... and sharper than ever

Scissor Sisters

Back and sharper than ever
The Dictator - review

The Dictator

Monstrous and monstrously funny
Revealed: The secret Twitter stars getting themselves into a web of mischief

Tweet T'who?

The secret stars of Twitter
First view from the top of the Orbit Tower on London Olympic site

Orbit Tower

First views from the top
Dip-dye fringes: London's new colour craze

Dip-dye fringes

London's new colour craze
Tamara Rojo: 'I danced in private for George Osborne'

Tamara Rojo

'I danced in private for George Osborne'
Kate shows how to flash some flesh in style

Daring Duchess

Kate shows how to flash some flesh in style
Laid in Chelsea: Caggie finds out where the real swingers get their action, with an orgy in every room

Laid in Chelsea

Caggie on where real swingers get their action
Brian Sewell on the beauty of Bauhaus

Bauhaus beauty

Brian Sewell's exhibition of the week