U.S. growth rate rose to 6.1 per cent

Press, 20 January 1979, Page 19

U.S. growth rate rose to 6.1 per cent

NZPA-Reuter Washington

Economic growth in the United States accelerated sharply in the fourth quarter of last year, rising to an annual rate of 6.1 per cent from 2.6 per cent in the preceding three months. The Government reports. For 1978 as a whole, the economy grew 3.9 per cent, down from 4.9 per cent growth recorded in 1977, but in line with Government projections. Inflation continued to rise in the October to-December period last year, rising at an annual rate of 8.5 per cent, after a 7.6 per cent rise in the previous three months.

When calculated at the dollars value in 1972 — the. year chosen by the government to provide a picture of economic growth without

the effects of inflation •—' the fourth-quarter output of the economy totalled $1412 billion up 1.5 per cent from $1391 billion in the third quarter. Measured in current dollars — with no adjustment for inflation — the gross national project grew at an annual rate of 14.7 per cent in the fourth quarter, up sharply from the 9.6 per cent increase in the JulySeptember period.

The United States Commerce Department said a surge in the real gross national product — the total output of the nation’s goods and services after adjustment for inflation — in the fourth quarter was the result of a large increase in total spending.

Most of the other components which make up the

gross national product also recorded increases in dollar terms during the period.