|
GDP up robust 6.1%
|
 |
February 26, 1999: 9:11 a.m. ET
Stronger investment, exports bring 4Q growth in a shade above forecasts
|
NEW YORK (CNNfn) - The strong economy was even stronger than first estimated in the fourth quarter, the government said Friday, growing at a rapid 6.1 percent annual rate, up from the 5.6 percent reported a month ago.
The growth in gross domestic product, the broadest measure of the U.S. economy, was one of the strongest of any quarter during the nearly eight-year-old expansion that began in the spring of 1991. The number was a shade above analysts' forecasts for a revised 6 percent growth rate for the quarter.
Businesses invested more heavily in plants and equipment and exports were higher than originally estimated, the department said.
Inflation all but vanished at year-end despite the robust growth. The GDP price deflator, a closely watched inflation gauge, rose a mere 0.7 percent, the smallest gain in four decades.
While fourth-quarter growth was increased, that didn't affect growth for all of 1998, which the department said held steady at 3.9 percent, the same as reported a month ago.
Other recent reports point to continued strength in 1999. Home sales hit a record in January, fueled by low mortgage rates, while durable goods orders jumped 3.9 percent last month, above analysts' forecasts.
Investors, concerned that strong economic growth will rekindle inflation, have pushed bond-market interest rates this week to the highest level in six months. Stocks have dropped while bond yields rose but stock investors have largely shrugged off the increase. 
-- from staff and wire reports
|
|
|
|
|
|
Commerce Dept.
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
