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US economic growth slows; expands by 1% in June Q

Last Updated: Friday, August 26, 2011 - 21:51


Washington: Indicating a fragile recovery, the world's largest economy, the US, expanded by one percent in the three months to June, lower than earlier estimate.
The American economy was first projected to have grown by
1.3 percent in the June quarter of 2011.

"Real gross domestic product -- the output of goods and services produced by labour and property located in the United States -- increased at an annual rate of one per cent in the second quarter of 2011," the Bureau of Economic Analysis (BEA) said on Friday.
The latest quarterly growth estimate is almost in line with the market expectations.

In the first three months of 2011, the US economy had expanded by just 0.4 percent.
The downward revision in second-quarter economic growth is mainly on account of lower consumer spending, fall in exports as well as downturn in private inventory investment.
The latest GDP growth figure of one per cent comes at a time when the national economy is grappling with the fallout of sovereign debt ratings downgrade and persistently high unemployment level.
Earlier this month, rating agency S&P had stripped the US of its coveted 'AAA' rating, a move which rattled global financial markets.
"Real personal consumption expenditures increased 0.4 percent in the second quarter, compared with an increase of 2.1 percent in the first... Real exports of goods and services increased 3.1 percent in the second quarter, compared with an increase of 7.9 percent in the first," BEA said in a statement.






First Published: Friday, August 26, 2011 - 21:51
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