Seeker of Truth
05-29-2003, 02:31 PM
Reuters
Economic Growth Revised Up in 1st Quarter
Thursday May 29, 9:40 am ET
U.S. gross domestic product, the broadest measure of economic output within U.S. borders, grew at a revised 1.9 percent annual rate in the January-March quarter, in line with Wall Street economists' forecasts and a revision upward from 1.6 percent estimated a month ago. The first-quarter expansion exceeded the slim 1.4 percent rate of growth posted in the fourth quarter of last year, but still reflects a slow crawl back to growth rates needed to generate more jobs.
The Commerce Department said consumer spending grew at a 2 percent rate in the first quarter instead of the 1.4 percent it reported a month ago -- a key reason for the upward revision in GDP since consumers drive about two-thirds of economic growth.
"Underlying the GDP numbers was an increase in final sales growth," said Peter Hooper, chief U.S. economist at Deutsche Bank, New York. "Underlying domestic demand is still expanding and despite all the headwinds we were facing in the first quarter with war concerns and high energy prices, we look for things to improve a bit in the second quarter."
Business investment softened in the first quarter, contracting at a 4.8 percent rate after expanding 2.3 percent in the last quarter of 2002. Spending on equipment and software dropped even more rapidly, falling at a 6.3 percent rate after a 6.2 percent growth pace the final quarter of 2002.
More @ biz.yahoo.com (http://biz.yahoo.com/rb/030529/economy_gdp_5.html)
Economic Growth Revised Up in 1st Quarter
Thursday May 29, 9:40 am ET
U.S. gross domestic product, the broadest measure of economic output within U.S. borders, grew at a revised 1.9 percent annual rate in the January-March quarter, in line with Wall Street economists' forecasts and a revision upward from 1.6 percent estimated a month ago. The first-quarter expansion exceeded the slim 1.4 percent rate of growth posted in the fourth quarter of last year, but still reflects a slow crawl back to growth rates needed to generate more jobs.
The Commerce Department said consumer spending grew at a 2 percent rate in the first quarter instead of the 1.4 percent it reported a month ago -- a key reason for the upward revision in GDP since consumers drive about two-thirds of economic growth.
"Underlying the GDP numbers was an increase in final sales growth," said Peter Hooper, chief U.S. economist at Deutsche Bank, New York. "Underlying domestic demand is still expanding and despite all the headwinds we were facing in the first quarter with war concerns and high energy prices, we look for things to improve a bit in the second quarter."
Business investment softened in the first quarter, contracting at a 4.8 percent rate after expanding 2.3 percent in the last quarter of 2002. Spending on equipment and software dropped even more rapidly, falling at a 6.3 percent rate after a 6.2 percent growth pace the final quarter of 2002.
More @ biz.yahoo.com (http://biz.yahoo.com/rb/030529/economy_gdp_5.html)