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| Version 1 | Version 2 |
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| US economy grows 2.5% on buoyant consumer spending | US economy grows 2.5% on buoyant consumer spending |
| (35 minutes later) | |
| The US economy grew at an annual rate of 2.5% in the first three months of the year, supported by the strongest consumer spending figures in two years. | |
| While the growth figure was lower than analysts' expectations, it was better than the 0.4% rate recorded in the final quarter of last year. | While the growth figure was lower than analysts' expectations, it was better than the 0.4% rate recorded in the final quarter of last year. |
| Consumer spending rose at an annualised rate of 3.2%, according to the Commerce Department data. | |
| But government spending, especially on defence, fell at a rate of 4.1%. | |
| Part of the pick up in growth was due to US farmers filling up grain silos following last year's devastating drought. Removing these inventories, GDP growth was closer to 1.5%. | Part of the pick up in growth was due to US farmers filling up grain silos following last year's devastating drought. Removing these inventories, GDP growth was closer to 1.5%. |
| The figures could renew calls for the Federal Reserve to maintain its monetary stimulus programme of quantitative easing. The central bank meets next week and it is widely predicted that it will stick to its $85bn-a-month bond-buying schedule. | The figures could renew calls for the Federal Reserve to maintain its monetary stimulus programme of quantitative easing. The central bank meets next week and it is widely predicted that it will stick to its $85bn-a-month bond-buying schedule. |
| Consumer spending accounts for more than two-thirds of US economic activity, and the 3.2% rise during the first quarter is the fastest rate since the fourth quarter of 2010. It grew at a pace of 1.8% in the fourth quarter of last year. | |
| However, there is concern among economists that recent employment and retail sales data suggests spending is slowing. | |
| "We have observed some positives that suggest growth will pick up in the back half of the year, but the US economy still struggles to accelerate in a sustainable fashion,'' said Dan Greenhaus, managing director at BTIG. |