The US economy staged a spectacular recovery in the first quarter of 2002, growing at a 5.8% annual rate, the Commerce Department said on Friday afternoon.
The report was stronger than expected by economists, who had forecast an increase of around 5%. It was the largest increase in GDP since the fourth quarter of 1999, and compared with a 1.7% rate in the fourth quarter of 2001.
The report was an 'advance' estimate of GDP and will be revised twice in the next two months.
The report suggests that the recession declared to have begun in March 2001 is over and was a limited downturn with just one decrease in quarterly GDP.
However, the National Bureau of Economic Research - which dates peaks and troughs in US business cycles - has yet to officially declare an end to the recession.
Economists noted that much of the increase in GDP was due to companies building back inventories, though domestic demand was healthy at 3.7%.
* The University of Michigan consumer sentiment index fell to 93 in the final April reading, from 94.4 in the preliminary reading. The drop was unexpected. The index was 95.7 in March.
