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Saturday, 27 May 2017

US growth rate revised up to 1.2%

The US economy grew at a faster pace than initially thought in the first three months of the year.
The latest official figures indicated the economy expanded at an annual pace of 1.2% in the quarter, up from the previous estimate of 0.7%.
The change came after upward revisions to business and consumer spending.
The initial estimate had been seen as a blow to US President Donald Trump, who pledged in his election campaign to raise growth to 4%.
However, the revised figure still represents a slowdown from the 2.1% growth rate recorded in the final quarter of 2016.
Consumer spending improved from the initial estimate of 0.3%, but growth remained tepid at 0.6%, slower than any quarter since 2009.
Ben Herzon, senior economist at Macroeconomic Advisers, said temporary factors, such as lower spending on heating bills thanks to a relatively warm winter, restrained first quarter growth.
"While somewhat stronger than the first report, it was still a pretty weak number," he said. "But don't fret because it's probably transitory."
The report also revised down 2016 estimates for wages and salaries, which could mean consumers have less of a cushion going forward, wrote Scott Hoyt, senior director of economic research at Moody's Analytics, in a note.
But Jennifer Lee, senior economist at BMO Capital Markets, said she's not worried about the weak consumer spending figures, which followed three quarters of 3% or more growth.
"I'm going to put that down as taking a breather," she said. "Those are pretty solid numbers so one quarter is not going to break that overall trend."
Source By BBC.COM
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