27 January 2012
Last updated at 11:22 ET
US economic growth has been buoyed by American firms stockpiling goods
The pace of US economic growth increased in the final three months of 2011, according to official figures.
The economy grew at an annualised rate of 2.8%, the Commerce Department said.
This was up from the 1.8% annual rate recorded in the previous quarter, although it was slightly lower than the 3% rate predicted by analysts.
However, the growth largely came from businesses stockpiling goods they had produced, rather than selling them.
Although the stockpiling lifted the figures, analysts believe businesses will not continue doing this, resulting in a lower growth figure for the current quarter.
The pace of consumer spending picked up to 2% from 1.7% in the previous quarter.
Much of this was attributed to an increase in sales of new cars, which rose by 14.8% over the quarter.
The Japanese tsunami last March disrupted production and delivery of models for major manufacturers, leaving customers waiting for pre-ordered cars.
‘Repairing damage’
US Treasury Secretary Timothy Geithner said it was worth remembering that
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