Thursday, May 29, 2014

US economy

US economy now one quarter away from a recession, but analysts are confident that growth will bounce back on strong consumer spending.The US economy contracted for the first time in three years in early 2014 after a much worse performance than originally feared.Washington’s commerce department said the world’s biggest economy shrank at an annual rate of 1% during the first quarter รข€“ a period marked by an unusually harsh winter in some of the more populous states.
Wall Street had been braced for the revised data to come in below the first estimate of 0.1% annualised growth between January and March but was surprised by the extent of the decline.
Analysts are confident that growth will bounce back in the second quarter and pointed to the underlying strength of consumer spending during the period when the economy was contracting.