Home-building and strong exports have kept the US economy growing faster than expected, reveal new Commerce Department figures.
Gross domestic product (GDP) rose at an annual rate of 3.8% in January-March 2005, above the initial 3.1% estimate.

The recent renewed surge in oil prices has yet to affect the headline growth figures, but huge deficits, a potential housing bubble and growing consumer debt could mean stormier times ahead for the US economy.

The buoyancy of the housing market was underscored by an 11.5% growth in spending on new homes, three times the rate in the previous quarter