Posted on 05/27/2010 7:05:24 AM PDT by mlocher
WASHINGTON (Reuters) - The economy grew at a slower pace than previously estimated in the first quarter as business investment slackened, while hard-hit state and local governments reduced spending at the steepest rate since 1981.
Gross domestic product expanded at a 3.0 percent annual rate, the Commerce Department said on Thursday, instead of the 3.2 percent pace it reported last month.
Analysts polled by Reuters had forecast GDP, which measures total goods and services output within U.S. borders, growing at a 3.4 percent rate in the January-March period. The economy expanded at a 5.6 percent pace in the fourth quarter and has now grown for three straight quarters.
Economists are monitoring the U.S. recovery closely to see how well the economy can endure the debt troubles that threaten to slow Europe's growth. The above-trend first-quarter U.S. growth suggests a solid base of support.
"The numbers are slightly shy of hopes, but they show that the U.S. economy is in recovery," said Subodh Kumar, chief investment strategist at Subodh Kumar & Associates in Toronto.
Separately, new applications for state jobless benefits dropped to 460,000 last week from 474,000 in the prior week, the Labor Department said, pointing to a gradual labor market recovery.
U.S. stocks were higher at the open, while Treasury debt prices were down sharply in early trade. The U.S. dollar fell versus the euro.
(Excerpt) Read more at news.fidelity.com ...
In 2009 while businesses were trimming their costs, governments continued their spending binge because of the "shovel ready" stimulus. States and cities are in trouble and must shed jobs. If there is no double dip, then the economy will grow only at a very anemic pace, as this data is showing.
Gee, I’m shocked.
ready now....1,2,3 ..”unexpected”....children..with a bottle of whiskey...keys to the Mustang etc....
We are in a depression and all of this is just satanic lies to lull the dying to sleep.
LLS
Typical Obama propaganda, and one we noted months back that he would do: Say something is great when everyone is watching then revise it to not so great when every is not looking.
Obama is a lair.
The economy grew at a slower pace than previously estimated in the first quarter as business investment slackened, while hard-hit state and local governments reduced spending at the steepest rate since 1981.
The facts..... expected!!!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.