Global Biz
US economic growth revised down to 2.7% in Q1
(Xinhua)
Updated: 2010-06-25 21:29
 |
Large Medium Small |
WASHINGTON - US economic growth in the first quarter was revised down to an annualised 2.7 percent from the previously reported 3 percent, according to the third estimate released by the Commerce Department Friday.
The growth was below market expectations of 3 percent. In the fourth quarter of 2009, the US economy rose 5.6 percent.
| ||||
The department said the increase in real GDP in the first quarter primarily reflected positive contributions from personal consumption expenditures.
Consumer spending rebounded by 3 percent, marking a big improvement from the fourth quarter when consumer spending grew 1.6 percent.
In the first three months of this year, the increase in business investment, meanwhile, was revised down to 11.4 percent from the second estimate of 13.1 percent.
Many economists believe US economic growth may slow down in the second half of the year as the government stimulus policies wane.
According to the latest World Economic Outlook report released by the International Monetary Fund last month, the US economy was expected to grow 3.1 percent in 2010, but would only increase 2.6 percent in 2011.
But the Federal Reserve last month revised up its forecast of the US economic growth this year, with lower unemployment.
According to the US central bank, the economy can grow between 3.2 percent and 3.7 percent this year. That is stronger than its forecast of a growth range of 2.8 percent to 3.5 percent in January.
The unemployment rate would fall to between 9.1 and 9.5 percent by the end of the year, down from the previous estimates of 9.5 to 9.7 percent.