US economy growing at 3.2% in fourth quarter

The US economy continued to grow in the final quarter of the year, expanding at an annual rate of 3.2 per cent, according to the Bureau of Economic Analysis.

That was down from the 4.1 per cent growth rate in the third quarter, but still represents a strong finish to the year.

On a quarter on quarter basis, the growth over the three month was 0.8 per cent, a touch higher than the UK’s 0.7 per cent expansion over the same period.

The Federal Reserve said this week that it will reduce its bond buying programme next month by a further $10bn, to $65bn, in response to the improving domestic outlook.