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US 1Q11 Economic Growth Lowered

The U.S. economy grew by less during the first three months of the year than had been initially estimated as consumer spending growth was revised down, according to Bloomberg.

    The U.S. economy grew by less during the first three months of the year than had been initially estimated as consumer spending growth was revised down, according toBloomberg. On Thursday, theCommerce Departmentreported that gross domestic product in the U.S. expanded at an annual rate of 1.8% in the first quarter, revising downwards the initial estimate of a1.9% annual rate of growth. The change disappointed economists who had been expecting to see an upwards revision to a 2.2% annualized increase, after a 3.1% gain in the fourth quarter of last year.

    The data showed that consumer spending increased by 2.2% in the first quarter, rather than the 2.7% estimated originally. Economists had expected a slight upwards revision, and the disappointing change ledGuy LeBasofJanney Montgomeryto note that “consumer spending was pretty anemic last quarter,” adding his forecast that “households are likely to be somewhat restrained going forward.” LeBas continued to say that he expects that “economic growth will run a little faster than the first quarter,” in the coming months.

    Click here to read the story from Bloomberg News.

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