Economists say growth in U.S. is likely to continue

(Reuters) - Factory activity in the U.S. Midwest hit a 22-1/2 year high in January as orders surged and employment prospects brightened, providing a fresh signal that the economy would stay on a solid growth path this year. Another report on Monday showed consumer spending ended 2010 on a firmer footing, a trend that economists expected to continue as the labour market recovery gains traction.
The upbeat data, which showed inflation largely under wraps, suggested the economy started the year with strong momentum. Stocks rose as investors set aside jitters over the
unrest in Egypt and prices for U.S. government debt fell.
"The factory sector news is an important positive omen for the broader economy, because increased production will yield significant income generation, which in turn will fuel stronger household consumption," said Joseph LaVorgna, chief U.S. economist at Deutsche Bank Securities in New York.
 
Full Article at : http://www.reuters.com/article/2011/02/01/idINIndia-54549020110201