Posted on 06/28/2012 11:19:18 AM PDT by Oldeconomybuyer
The U.S. economy grew only modestly in the first quarter, the government confirmed on Thursday in a report that underscored the economy's vulnerability as global growth slows.
Gross domestic product rose at a 1.9 percent annual rate, with motor vehicle output accounting for more than half the gain, the Commerce Department said.
Auto production contributed 1.16 percentage points to GDP growth, reflecting pent-up demand that has since waned.
Excluding autos, GDP grew at only a 0.7 percent rate.
"Given that domestic growth is being generated by the autos sector, as we go into the second quarter, a pretty soft outcome looks likely," said Jeremy Lawson, a senior economist at BNP Paribas in New York.
(Excerpt) Read more at reuters.com ...
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