The US economy grew at a miserly 0.1% in the first quarter of the year as difficult winter conditions disrupted the economy and exports fell. Forecasters had expected a 1.2% increase in GDP according to Bloomberg. An assumption that the severe weather conditions in the first three months of the year was to blame is supported by a significant rise in consumer spending of 3% which was driven primarily by a rise of 4.4% in spending on services. including utility bills as America turned up the thermostat during extended bouts of bitterly cold weather.
Most economists expect a significant rebound in the second quarter with predicted growth levels of 3% which hasn't been seen since the pre-crisis days of 2005.
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