Posted June 25, 2010
GDP growth revision lowered
The Commerce Department said the U.S. economy grew by 2.7 percent in the first quarter, lower than what government forecasters previously projected.
The 2.7 percent figure was down from an original estimate of 3.2 pecent in April. In the fourth quarter of 2009, real GDP increased 5.6 percent.
Consumer spending, a key engine of growth for the U.S. economy, was less robust than previously thought. Spending rose by 3.0% in January through March, down from a previous estimate of a 3.5% increase.
Growth in the January-March period was held back by business spending, which only rose at a 2.2 percent rate instead of 3.1 percent as reported last month.
On a positive note, corporate profits were revised up, rising by 12.1% from a previously reported 9.7% increase. In the fourth quarter, they rose 8.2%. Year-over-year, earnings were up 45.9%.
Click here for the Commerce Dept. press release.
