by Jiang Xufeng
The U.S. Federal Reserve on Tuesday forecast that the U.S. economy would pick up momentum in the near term, but its outlook for the U.S. economic activity over the medium term was still cautious, as an array of factors might restrain the economic growth.
Central bank officials held that with the recent strong production and spending data, the staff revised up its projected increase in real gross domestic product (GDP) in the near term.
U.S. economic growth was revised upward to an annual rate of 2. 6 percent in the third quarter of 2010, higher than the second estimated pace of 2.5 percent released in November, reflecting positive contributions from personal consumption expenditures, private inventory investment, nonresidential fixed investment, exports, and federal government spending.
Tuesday figures from the Department of Commerce revealed that the new orders for U.S. manufactured goods rose 0.7 percent in November after a slight decline in October boosted by nondurable goods demand, indicating the ongoing bumpy economic recovery.
The U.S. Institute of Supply Management (ISM) announced on Monday that the manufacturing index, also known as the purchasing managers index, stood at 57 percent in December, higher than the reading of 56.6 percent in November.