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US GDP growth revised down slightly | US GDP growth revised down slightly |
(about 1 hour later) | |
The US economy grew at an annualised rate of 2.4% in the first three months of the year, figures from the Commerce Department show. | |
The figure is slightly slower than the 2.5% rate originally estimated for the quarter. | The figure is slightly slower than the 2.5% rate originally estimated for the quarter. |
Consumer spending was stronger than first thought, but businesses bought less and some government spending cuts were deeper than previously estimated. | |
Economists widely expect growth to slow again in the next three months. | Economists widely expect growth to slow again in the next three months. |
That is in part due to the expected impact of federal spending cuts, but also of the continuing weakness is the global economy. | That is in part due to the expected impact of federal spending cuts, but also of the continuing weakness is the global economy. |
On Wednesday, the Organisation for Economic Co-operation and Development (OECD) downgraded its forecasts for global growth to 3.1% this year and 4% in 2014. | |
In particular, major US trading partners such as the eurozone are predicted to remain in recession this year. | |
Growth pick-up | |
By comparison, the US has recovered relatively strongly from the global economic downturn. | |
The 2.4% annualised growth figure describes how much the economy would grow by in 12 months if the growth seen in the quarter was maintained across the year. | |
It is the strongest rate of growth since the end of 2011, and much higher than the 0.4% annualised rate recorded in last quarter of 2012. | |
In quarter-on-quarter terms - the measure by which most other countries measure GDP growth - the US grew by 0.6% between January and March. | |
In contrast, the eurozone economy contracted by 0.2% over the same period. | |
Consumer spending accounts for about 70% of US GDP. Consumers may have been emboldened by improvements in the jobs market, given that employers have added an average of more than 200,000 jobs a month since November. | |
There are also increasing signs of a recovery in the housing market. | There are also increasing signs of a recovery in the housing market. |
The Commerce Department said the "general picture of overall economic activity is not greatly changed". |