Investment Expand Business Growth in the U.S

NEW YORK

The U.S. economy grew slightly faster than expected late last year due to growth of business - investment. As official figures showed on Friday, there are signs of further sustainable growth.
Separate figures for the business - activity in Chicago is also reinforced expectations of employment large leap to create jobs, despite the overall decline in business activity.
U.S. GDP, the broadest measure of national economic health, was revised upwards to 4.1% annual growth for the fourth quarter, slightly above the preliminary evaluation of 4% of the Department of Commerce last month.
The projections were reduced to 3.6%, and the results showed the strongest growth at the end of the quarter since 1984, even pobiv achieve incredible boom in the late 1990's.
"In general, the signals for growth is quite positive. It is clear that business investment recovered, but there are still questions about the labor market," said a senior economist at UBS Jim O'Sillivan.
He said that the economy "if that is stronger in the current quarter and the likely growth of approximately 5.0%, which portends good opportunities for employment.
The report helped lift the stock exchange during the day, but the index of S & P 500 declined by the end of trading in 1144. Bond Market largely dropped from the accounts of the revision to GDP, as well as earlier data on the capital costs have been optimistic.

COMPANIES INCREASING CAPITAL COSTS
GDP for the fourth quarter rose because the capital costs for business equipment and software were more robust than initially expected and the company built up inventories at a faster pace.
"Suddenly, the good news in these data - it is largely a review of capital costs for equipment and software, which is currently estimated at 15.1%, rising from 10.0% projected," said chief U.S. economist at HighFrequency Economics Ian Shepherdson.
Jump businesses - investment reinforced expectations that capital expenditures will lead the economy higher this year, even though consumer spending has decreased since last year's improving as a result of tax cuts. In the fourth quarter, consumers reining in their spending on expensive durable goods, which fell by 0.1%.
The collapse of the capital costs of business led the economy into recession in 2001. And the turnaround supports expectations of sustained economic growth.
In the fourth quarter, imports jumped to 16.4% year on year, up from the originally obyavlennyh11.3%, which is another reflection of sustained American demand.
With the weaker dollar, exports also took a strong position, rising to a revised 21% level, the biggest jump in seven years.

THE SITUATION IN NEW YORK REGION IMPROVE
It was a lot of good news to close before the review of activity in the Mid - west, despite a slight drop in the overall index of the National Association of Chicago purchasing managers from 65.9 to 63.6 in February.
A significant component of employment unexpectedly increased to best level since April 1998, rising from 48.3 to 54.8.
"We will see in the February payroll, whether it is how we see it from the overall figures," said chief economist at FTN Financial, Chris Lowe.
Another regional report also showed that the momentum gained so far for the economy of New York in February, as the Wall Street recovery and slow the loss of jobs, help businesses "the Big Apple" to take a six-month growth.
Index of Business - National Association of condition of purchasing managers in New York increased from January to 257.3 in February, 267.2. This is the highest level since September 2001., When the city is already in recession, September 11, was attacked.
Regional indicators hoped that the hiring of new employees soon may increase substantially, which will ensure the sustainability of the economy.
The indicator of consumer confidence fell through the weak labor market. According to data from the University of Michigan on Friday, the index fell in February to 94.4 from the previous 103.8.
The head of the Federal Reserve, Alan Greenspan gave to Congress on Wednesday optimistic assessment of prospects for the economy.
"Recent indicators suggest that the economy has received a strong start v2004g. And have good prospects for sustained expansion in the future," he said.

Stanislav Skrypnik