US GDP grows but markets slump at week end

Up from 2.6% during the previous quarter, the figure was slightly weaker than the predicted rate of 3.5% but could still be adjusted. Consumer spending was up by 4.4%, the fastest rise since Q1 2006, according to the Commerce Department's statistics. Meanwhile, the US economy grew by 2.9% in 2010 overall, its strongest showing since 2005. Despite the news, the Dow Jones has fallen in early trading by 0.63% to 11,913.73. The FTSE is also down by 1.17% to 5,895.05 as it approaches the end of this week's trading, with energy and mining stocks a drag on the index.