4th Quarter Growth Rate Not Expected to Continue

The US economy closed out 2009 on a high note, growing at a rate of 5.9 percent over the final three months. This was slightly better than the Commerce Department’s estimate of 5.7 percent but experts say the economy will not maintain the torrid pace into 2010.

Much of the growth can be attributed to a one-time boost to manufacturing as businesses re-stocked inventories they had allowed to decline during the worst of the recession. While overall growth is expected to be positive during 2010, critics point to the recent drop in consumer confidence, unemployment that continues to run at 9.7 percent, and a record fate of foreclosures as evidence that growth prospects remain weak.

Source: Associated Press

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