US ECONOMY- ON THE TRACK THOUGH CONSUMER SPENDING STILL SOFTENS

Gross domestic product rose at an annualized rate of 3.1 percent, the Commerce Department said in its final estimate, revised up from 2.8 percent. The consumer sentiment report added to some recent economic data -- excluding employment and manufacturing -- that suggested growth in the first three months of 2011 would at best match the fourthquarter pace, or slow.

According to Sweet, data so far suggests growth in the first three months of 2011 was between 2.5 percent and 3 percent. Rising fuel prices, boosted by unrest in the Middle East and North Africa, are largely blamed for the expected pullback in growth, although economists expect it will be temporary. As yet, no big impact on the U.S. economy is expected from the devastating earthquake and tsunami in Japan. Treasury Secretary Timothy Geithner on Friday said he was not concerned the disaster in Japan would hurt the U.S. recovery. U.S. real gross domestic product increased at a 3.1% annualized rate in the fourth quarter, revised up from the 2.8% pace reported one month ago. The government provides three estimates of economic growth per quarter, with each reflecting more complete information than the last. Investors will get a look at Hutchison Whampoa's full-year results and two reports on March manufacturing activity in China, plus industrial-output data from Japan. Market Watch's Lisa Twaronite in Tokyo looks at the week ahead.

New data showed that corporate profits had a banner year in 2010. Before taxes, corporate profits increased 36.8% in the past year, the largest jump since 1950. The revision to GDP was in line with expectations of economists surveyed by MarketWatch. Compared with the previous estimate, the government estimated larger business investment. Inventories were less of a drag on growth than previously estimated. Final sales of domestic product increased at a 6.7% annual pace, unchanged from the earlier report. Economists are much more worried about the current quarter, which ends next week. Over the past few weeks, analysts have been steadily trimming their estimates for first-quarter growth. The trend continued Thursday, when Bank of America Merrill Lynch, Macroeconomic Advisers and Morgan Stanley each cut their first-quarter GDP view. Macroeconomic Advisers' estimate declined to 2.3% from 2.5%, while Morgan Stanley's slipped to 2.5% from 2.7% and B. of A.'s estimates fell to 2.2% from 2.5%, following weak durable-goods orders in February.

US markets shown some range bound trading despite some good economic reports as traders showed concern over Japan's nuclear crisis and violence in the Middle East and North Africa. Oil prices eased a bit as rebels in Libya, gained ground against Moammar Gadhafi with the help of international airstrikes against Gadhafi's forces. On the domestic front, the Commerce Department said that consumer spending rose at its fastest pace in four months in February, though some of the increase was driven by higher gas prices. On the same time, the National Association of Realtors said more Americans signed contracts to buy homes in February than economists were expecting. Sales rose in every region but the Northeast, but remained below what is considered a healthy level. Sales agreements for homes unexpectedly rose 2.1 percent last month to a reading of 90.8. Signings were 19.6 percent above June's index reading, the low point since the housing bust. Rupee, after losing all its steam in the previous week, came back on its track in the last week of March supported by gains in the stock market amidst dollar weakness against ther Asian currencies. Local unit was also comforted by the external commercial borrowing-related dollar inflows. However, higher demand from oil importers for the greenback could limit the rise of domestic currency going ahead in the day.