The US economy grew by 2.2 per cent in 2012 and it will continue to grow during the first quarter of 2013

Customers shop for bargains | EPA/TANNEN MAURY

US economic growth gains momentum

BY KARAFILLIS GIANNOULIS | APRIL 26, 2013 - 2:28PM

According to Bloomberg, the US economic growth is ongoing. The US Bureau of Economic Analysis reported that in 2012 the real national GDP grew by 2.2 per cent. Moreover, Bloomberg reported today that the US economy grew by 3 per cent at an annualised rate during the first quarter of 2013.

According to a Bloomberg survey, the world’s largest economy, if we don’t take under consideration the European Union as a whole, based its 2013 growth to strong consumer spending.  Carl Riccadonna, a senior U.S. economist at Deutsche Bank Securities in New York told Bloomberg, “we had strong growth driven by domestic demand. The gain in consumer spending looks pretty impressive, given the tax increase.” However, at the same time, the first quarter of 2013 “was misleadingly strong. We’re downshifting.”

Financial Times (FT) reported that the minor US economic growth during the last quarter of 2012 makes the 2013 first quarter figure unreliable for any solid future estimates. Jim O’Sullivan at High Frequency Economics in New York told FT, that the first quarter percentage will be above 3 per cent. However, he stressed that his company doesn’t think the annual trend is necessarily above 3 per cent.

The official data for the US economic growth will be announced by the Commerce Department in Washington at 8:30 a.m. Overall, economist believes that the percentage figure will range from 1 per cent to 3.8.

In regard with 2012, durable-goods manufacturing, finance and insurance and wholesale trade were the leading contributors to U.S. economic growth.

In specific, manufacturing contribution to the national GDP rose 6.2 per cent in 2012, after increasing 2.5 per cent in 2011. Moreover, durable-goods manufacturing, was once again the largest contributor for the US economic growth, and it increased 9.1 per cent during the last year. Moreover, for the first time after two consecutive years, the finance and insurance industry increased 3.6 percent in 2012. Last, wholesale trade also increased 4.8 per cent.    europe on line