Final GDP Figure for Q1 Revised Down to 2.7%
Tweet
Share
E-mail
The government lowered the reading for the rate of growth the U.S. economy saw in the first quarter of 2010, due to consumers actually spending less than previously forecasted.
The gross domestic product increased by 2.7 percent in the period from January to March according to the Commerce Department. The reading was revised down from the previously disclosed growth of 3 percent released last month.
The rate of growth was well off the pace of 5.6 percent in the final quarter of 2009 as the economic recovery from the recession that gripped the nation in 2008.
The report on Friday was the third of three estimates that the government makes for the GDP in each quarter.
A growth rate of 2.7 percent would be considered healthy under normal conditions, but during a recovery from a recession, the expansion rate is relatively weak. After the downturn in the 1980s, the GDP recovered at rates of 7 percent to 9 percent for five consecutive quarters.
The good news from the report included a growth of 3 percent in consumer spending, while businesses increased spending on equipment in software by 11.4 percent.
The mild growth will likely do nothing to positively impact the high unemployment rate, as economists estimate that growth of 5 percent or more will be needed for an entire year to lower the current rate of 9.7 percent.
The gross domestic product increased by 2.7 percent in the period from January to March according to the Commerce Department. The reading was revised down from the previously disclosed growth of 3 percent released last month.
The rate of growth was well off the pace of 5.6 percent in the final quarter of 2009 as the economic recovery from the recession that gripped the nation in 2008.
The report on Friday was the third of three estimates that the government makes for the GDP in each quarter.
A growth rate of 2.7 percent would be considered healthy under normal conditions, but during a recovery from a recession, the expansion rate is relatively weak. After the downturn in the 1980s, the GDP recovered at rates of 7 percent to 9 percent for five consecutive quarters.
The good news from the report included a growth of 3 percent in consumer spending, while businesses increased spending on equipment in software by 11.4 percent.
The mild growth will likely do nothing to positively impact the high unemployment rate, as economists estimate that growth of 5 percent or more will be needed for an entire year to lower the current rate of 9.7 percent.
You May Also Be Interested In
- Susquehanna Downgrades Live Nation Entertainment (LYV) to Neutral
- Lower gasoline prices restrain US retail sales, underlying momentum remains
- U of M Sentiment (Jul P) 54.4 vs 51 Expected
Create E-mail Alert Related Categories
Economic Data, Insiders' BlogSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
