US economy appears more sluggish than though | WPN World People News

The US economy has grown at an annual rate of 1.9 per cent which is slightly weaker than expected in the first three quarters of 2012, according to official data.

This is the second official estimate of the US gross domestic product (GDP) from the Commerce Department that is lower than its initial estimate of 2.2 per cent.

It showed consumer spending grew at 2.7 per cent instead of the previously estimated 2.9 per cent, while a drop in government spending from 3.9 per cent to 3 per cent also slowed down the economic growth. A rise in the growth in imports also accounted for the weaker outlook.

Peter Newland, an economist at Barclays Research, told AP news wire service that he was discouraged by the US slowdown in first-quarter growth.

"This report does little to change the perception of an economy ticking along at a moderate pace but failing to break out into a full-on recovery with consistently above-potential growth," Newland said.

The data showed weekly applications for unemployment aid rose 10,000 to a seasonally adjusted 383,000.

It also revealed that private businesses added 133,000 jobs last month, disappointing economists, who had hoped to see job growth accelerate.

The figures showed that after-tax corporate profits also fell for the first time in three years in the US by 4.1 per cent, the biggest fall since the last three months of 2008.

Source: United States News.Net