US economy back in the black, says Geithner

The US economy is making a solid recovery with a 3.2 per cent growth in the October-December 2010 quarter, Treasury Secretary Timothy Geithner said at the World Economic Forum today.

The US economy grew 3.2 per cent in the last three months of 2010, spurred by increased consumer spending. However, the growth was at slightly lower pace than the expected rate of around 3.5 per cent.

Although there is no sign of a boom, the US economy is recovering, Geithner said during an interview with talk-show host Charlie Rose.

"More confident that now we have a sustainable expansion, not a boom," he said, adding that the growth would help the US economy avoid slipping back into recession or a period of sub-trend growth.
 
"Real gross domestic product - the output of goods and services produced by labour and property located in the US - increased at an annual rate of 3.2 per cent in the fourth quarter of 2010," US Bureau of Economic Analysis (BEA) said.

The fourth-quarter growth, although slower than the expected 3.5 per cent, was much higher than the 2.6 per cent growth recorded the previous three months (July-September 2010). This points to an overall improvement in the economic situation, the Bureau said.

Real personal consumption expenditures in the US jumped 4.4 per cent in the fourth quarter against an increase of 2.4 per cent in the third quarter of 2010.