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Investing Specialists

The United States, Potential Engine of Worldwide Growth?

There's a chance steady growth in the U.S. could drag Europe into better times.

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While the markets loved this week's coordinated central bank action to calm investors panicky over Europe, I was more impressed with the strength of the U.S. economy.

Strong retail sales, an improving employment report, falling gasoline prices, rising auto sales, and an improvement in the U.S. purchasing managers report all paint a picture of a stronger U.S. economy. Even as it appears that Europe may drift into a quarter of two of contraction (according to the Organization of Economic Corporation and Development), the U.S. appears to be poised to grow by 2.5%-3% in the fourth quarter and at least 2% in the first quarter of 2012.

Robert Johnson, CFA does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.