U.S. First Quarter GDP Growth Unrevised At 1.9%
09:37, 28th June 2012
(RTTNews) - The final estimate on U.S. economic growth in the first quarter of the year was unrevised from the previous estimate and came in line with expectations, according to figures released Thursday by the Commerce Department.
Although the estimate of U.S. GDP growth for the first quarter of 2012 held at 1.9 percent, matching the expectations of most economists, some of the elements contributing to the overall growth were adjusted.
According to the Commerce Department, estimates of U.S. imports, a net negative to domestic economic growth, were revised down, while non-residential fixed investment was revised up.
However, the positive revisions were offset by downward revisions to U.S. exports and to personal consumption expenditures, more commonly known as consumer spending.
The increased level of non-residential fixed investment came in part because revised data showed larger investments in petroleum and natural gas drilling from the Department of Energy.
The report also showed that the pace of consumer spending growth was downwardly revised to 2.5 percent from the 2.7 percent previously reported.
The overall increase in GDP reflected positive contributions from consumer spending, exports, fixed investments in the residential and nonresidential sectors and private inventory growth that were partially offset by a slowdown in government spending.
Although the rate of growth for the first quarter of 2012 was notably below the 3 percent growth recorded in the fourth quarter of 2011, compared to the first of 2011, the growth is up from the anemic 0.4 percent growth posted in that quarter.
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