GDP jumped 5.7 percent in fourth quarter

January 29, 2010 - 0 comments

Washington -- The U.S. economy climbed for the second consecutive quarter to close out 2009, jumping a seasonally adjusted rate of 5.7 percent, the government said.

Economists expected growth of less than 5 percent, following the 2.2 percent rise in the gross domestic product in the third quarter.

The Commerce Department Friday released the first of three GDP estimates. For the year, which started recession, the GDP fell 2.4 percent, the largest drop since World War II.

In the fourth quarter, the automotive industry added 0.61 percent to the nation's economic output following a 1.45 percent rise in the third quarter.

Computer sales took 0.3 percent away from GDP after subtracting 0.08 percent in the third quarter.

Imports increased in the fourth quarter, but so did exports, private investment and consumer spending, all of which add to the bottom line.

Consumer spending, which is estimated at 70 percent of the GDP, rose 2 percent in the final quarter of the year, after rising 2.8 percent in the third quarter. Durable goods production, however, fell 0.9 percent after surging 20.4 percent July through September.