U.S. economic growth during the first quarter was slower than initially thought, revised data show the commercial department. In the first three months of the year gross domestic product (GDP) of U.S. grew by 1.9%, and preliminary data showed an increase of 2.2%. This is a significant drop from 3 per cent growth achieved during the last quarter of last year.
Also for the first time in three years include corporate profits after taxes. For weakening growth also contribute data revised down of consumer spending responsible for 70% of the U.S. economy and increased imports. Role played for the delay and modest growth in business inventories, which increased by 57.7 billion dollars instead of pre-publicized 69.5 billion
Analysts expect second quarter business to recover more active stocks, which combined with the declining price of petrol and improving housing market will contribute to accelerating growth. He is expected to reach 2.5% during April-June.
Consumer spending grew at a rate of 2.7% instead of the previously announced 2.9%. However, this acceleration is compared with 2.1 per cent in the fourth quarter of 2011, Government spending fell by 3.9% which is significantly higher than the initial data for 3% decrease. Corporate profits fell 4.1%, which is the largest decline since the fourth quarter of 2008 In the last quarter of 2011, corporate profits grew by 1.1%.
As negative data for the U.S. economy were added applications for unemployment, which rose for the fourth consecutive week. On Thursday, the Ministry of Labor announced that applications have increased by 10 thousand to 383 thousand at the beginning of May a total of 2.62 million Americans receiving unemployment benefits. However, newly hired workers in private companies has increased to 133 thousand in May compared to 113 thousand in April.