U.S. Economy Expanded at 1.9% Pace in First Quarter, Above Prior Estimate

The U.S. economy grew at a 1.9 percent pace in the first quarter, marking the start of what Federal Reserve policy makers project is a temporary slowdown in growth.

The revised rise in gross domestic product matches the median forecast of economists surveyed by Bloomberg News and follows a 3.1 percent gain in the prior quarter, Commerce Department figures showed today in Washington. The government last month estimated first-quarter growth at 1.8 percent. The figures also showed inflation climbed more than previously calculated.

The jump in commodity prices and the shortage of auto parts stemming from the disaster in Japan earlier this year that have also restrained growth this quarter are showing signs of improving. Fed officials, who lowered their forecasts for growth and employment this year and next, this week maintained record stimulus to underpin the recovery.

Read Full Article from Bloomberg

- Posted: 2011-06-24 11:18:41

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