World’s largest economy expands by 3.2% in Q1
Official figures have revealed the world’s largest economy continued its strong recovery after annualised growth of 3.2% was recorded in the first three months of 2010, according to the US Commerce Department.
However, the figure is the first of three estimates and could be revised up or down in the next few months.
The figures follow growth of 5.6% reported in the final quarter of 2009 and the slower growth reported for quarter one was partly due to reduced Government spending and a slump in exports.
Exports grew by 5.8% in the first three months, far less than the 23% growth rate in the final three months of 2009.
However, analysts were optimistic. Michael Woolfolk at BNY Mellon, comments: “Retail sales are up, people are spending money. We’re seeing the beginning of the process of a broad-based recovery.”
US President, Barack Obama, described the figures as “an important milepost on the road to recovery”.
Across the Atlantic, official figures recently revealed the UK economy grew at just 0.2% in the first three months of 2010.