US Q1 economic growth figures revised upwards
The Commerce Department has today revealed the US economy grew by an annualised 1.9% in the January to March period – marginally higher than the previous estimate of 1.8%.
On a quarterly basis, growth was up 0.58%.
Today’s reading is the third and final for first quarter growth.
Stubbornly high unemployment and a depressed housing market are impacting negatively on the world’s largest economy with corporate profits also attributed to the slowdown.
Earlier this week, the Federal Reserve opted to keep interest rates at the record low of between 0% and 0.25% and hinted that they will stay this way for the medium-term.
US interest rates have now been at this rate since December 2008 in an effort to stimulate economic growth.
The US central bank also lowered its growth forecast for the world’s largest economy in the face of higher energy prices.
It is now forecasting the economy will grow between 2.7% and 2.9% in 2001, revised from the 3.1% to 3.3% it predicted in April.