Tag: U.S. Economy

U.S. Economic Growth Lowered To A 2.4 Percent Annual Rate

Posted on by admin

The U.S. economy grew at a 2.4 percent annual rate last quarter, sharply less than first thought, in part because consumers didn't spend as much as initially estimated.

Severe winter weather is expected to further slow the economy in the current quarter. But as temperatures warm, most economists think growth will rebound beginning in the spring.

The Commerce Department on Friday reduced its estimate of economic growth in the October-December quarter from an initial 3.2 percent annual rate. The revised estimate of 2.4 percent annual growth is the weakest quarterly showing since the first quarter of 2013.

A key reason for the downgrade was that consumer spending is now estimated to have expanded at a 2.6 percent annual rate, below the initial estimate of 3.3 percent though still the strongest quarterly spending by consumers in nearly two years. Continue reading "U.S. Economic Growth Lowered To A 2.4 Percent Annual Rate" →

U.S. economy grows at slower 1.8 pct. rate in Q1

Posted on by The INO.com Team

The U.S. economy grew at an annual rate of 1.8 percent in the first three months of the year, significantly slower than first thought. The steep revision occurred mostly because consumers spent less than previously estimated, a sign that higher taxes could be dampening growth.

The Commerce Department revised its estimate of economic growth for the January-March quarter down from a 2.4 percent annual rate. The revised rate was still faster than the 0.4 percent rate in the October-December quarter.

Economists had thought growth in the April-June quarter would be 2 percent or less. Analysts had also expected growth to strengthen in the second half of this year. The downgrade for the January-March quarter will likely change those estimates. Continue reading "U.S. economy grows at slower 1.8 pct. rate in Q1" →

U.S. economy accelerates at 2.5 percent rate in Q1

Posted on by The INO.com Team

U.S. economic growth accelerated to an annual rate of 2.5 percent from January through March, buoyed by the strongest consumer spending in more than two years. Government spending fell, though, and tax increases and federal budget cuts could slow growth later this year.

The Commerce Department said Friday that the economy rebounded from an anemic 0.4 percent annual growth rate in the October-December quarter. Much of the gain reflected a jump in consumer spending, which rose at an annual rate of 3.2 percent. That was the biggest such jump since the end of 2010.

Growth was also helped by businesses, which responded to the greater demand by rebuilding their stockpiles. And home construction rose further.

But government spending fell at a 4.1 percent annual rate, led by another deep cut in defense spending. The decline kept last quarter's increase in economic growth below expectations of a 3 percent rate or more. Continue reading "U.S. economy accelerates at 2.5 percent rate in Q1" →