First-quarter growth reading slashed in cautionary note on economy


By Call it Crazy   Follow   Wed, 26 Jun 2013, 8:21pm   79 views   1 comment
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WASHINGTON (Reuters) - The U.S. government slashed its estimate for first-quarter economic growth on Wednesday, offering a cautionary note on the recovery as the Federal Reserve ponders curtailing its massive monetary stimulus.

Gross domestic product expanded at a 1.8 percent annual rate in the quarter, the Commerce Department said. The economy was previously reported to have grown at a 2.4 percent pace after a gain of just 0.4 percent in the final three months of last year.

Almost all categories were revised lower, with the exception of home construction and government. Economists polled by Reuters had expected GDP growth would be unrevised.

The biggest surprise was consumer spending, which grew at a 2.6 percent pace, not the 3.4 percent rate previously estimated. The revision to consumer spending, which accounts for more than two-thirds of U.S. economic activity, sliced more than a half percentage point off the GDP growth rate.

http://finance.yahoo.com/news/u-first-quarter-growth-cut-131810650.html

Hmmm... I guess consumers stopped spending on food, gas, electric, cell phones, etc. so they could save their money for a down payment on a house...

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  1. Bubbabear


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    1   9:08pm Wed 26 Jun 2013   Share   Quote   Permalink   Like   Dislike  

    Call it Crazy says

    Hmmm... I guess consumers stopped spending on food, gas, electric, cell phones, etc. so they could save their money for a down payment on a house...

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