United States of America Economy Grew 2.4% annual pace
US Commerce Department told on Thursday, 30th May, 2013 that US economy (Gross Domestic Products) grew 2.4% annual pace in the first quarter of 2013. The early prediction was 2.5% . But revised GDP growth came out as 2.4% . According to Government officials, Consumer spending was somewhat higher but business investment and Government outlays were revised down.Consumer spending is the heart of US Economy. However , this Consumer spending is revised up 3.4% from 3.2%. That is the fastest Rates since last Two Years. Yet business investment in commercial real estate fell sharply and companies did not increase inventories as much as previously believed. Inventories rose $38.3 billion instead of the previous estimate of $50.3 billion. Also, government spending fell by a revised 4.9% instead of 4.1%. In the trade category, export growth was revised down to 0.8% from 2.9% and import growth was reduced to 1.9% from 5.4%. Adjusted corporate profits, meanwhile, fell by $43.8 billion in the first quarter after a $45.4 billion increase in the fourth quarter. Inflation as measured by the PCE index was muted, rising just 1.0% overall or by 1.3% excluding food and energy. The GDP report will be refined through one further update next month.
Source:- Market Watch
