Friday, April 27, 2012

US Economy Grows at a Disappointing 2.2%


Bummer. U.S. economic growth cooled in the first quarter as businesses cut back on investment and restocked shelves at a moderate pace, but stronger demand for automobiles softened the blow, CNBC writes..

Gross domestic product  expanded at a 2.2 percent annual rate, the Commerce Department said on Friday in its advance estimate, down from the fourth quarter's 3 percent rate.  While that was below economists' expectations for a 2.5 percent pace, a surge in consumer spending took some of the sting from the report. However, growth was still stronger than analysts' predictions early in the quarter for an expansion below 1.5 percent.

Consumer spending which accounts for about 70 percent of U.S. economic activity, increased at a 2.9 percent rate - the fastest pace since the fourth quarter of 2010. That compared to a 2.1 percent rise in the fourth quarter…

Read more at http://www.cnbc.com/id/47202822

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