The media is contrasting the US growth rate which hit 2.8% per annum in the last quarter of 2011 favourably with the stalling economies of Europe. What they are not doing, however, is picking up on the different composition of growth.
In the UK the public sector made a positive contribution to growth, whilst industry and mining fell, producing an overall small decline. In the US federal spending was down 7.3% and total public spending down by 4.6% whilst the private sector grew well, producing the overall gain of 2.8% per annum.
I presume this part of the truth did not fit in with the highly spun stories abouts cuts, or with the belief that Obama has avoided cuts. The facts show in the last quarter tough cuts in US public spending along with good growth. In the UK there was public spending growth with no overall growth. That’s too difficult for UK commentators to explain!