Nirmal Bang Securities Pvt. Ltd. - Daily Report 010210

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U.S. economic growth surged at the end of 2009, posting a larger‐thanexpected but likely unsustainable gain driven more by slower inventory
liquidation than by consumer spending. Gross domestic product rose a
seasonally adjusted 5.7% annual rate from October through December,
the Commerce Department said Friday in its first estimate of fourthquarter
GDP. Economists surveyed by Dow Jones Newswires had forecast 4.8% GDP growth during the fall. The Q4 GDP surge doesn't change the view that growth is likely to be subdued by historical standards, in the 2.5%‐3.0% region for 2010. Real final sales of domestic product, which is GDP less the change in private inventories, increased at an annual rate of only 2.2% in the fourth quarter.


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