Mexican Media Brands
U.S. Economy Grew 2.5% in First Quarter
America's gross domestic product, which expanded at a 0.4% annual rate from the third to the fourth quarter of 2012, grew at a 2.5% pace in the January-March period, according to a preliminary estimate from the Dept. of Commerce.
#economics
Share
America's gross domestic product, which expanded at a 0.4% annual rate from the third to the fourth quarter of 2012, grew at a 2.5% pace in the January-March period, according to a preliminary estimate from the Dept. of Commerce.
Consumer spending increased 3.2% from the previous quarter, marking the fastest pace since late 2010. Consumption was encouraged by low interest rates and improving home prices, analysts say. Autos sold at a 15.3 million-unit annual rate in the first quarter, the highest level since the same period in 2008.
Robust auto production added 0.24 points to first-quarter GDP. Stronger exports, inventory building and growth in home construction also contributed to the expansion.
But the quarter's gains were partially offset by a 4.1% reduction in government spending, which was the 10th such decline in the past 11 quarters. Private-sector investment in equipment and software, a gauge of business sentiment, advanced only 3% in the latest period compared with nearly 12% in the last quarter of 2012.
The Federal Reserve's preferred inflation measure, which is linked to consumer spending, rose 0.9% in the quarter. That gauge had climbed 1.6% in the October-December period. The Fed aims to keep inflation at about 2%.
Analysts expect full-year U.S. economic expansion of about 2%.
RELATED CONTENT
-
Global Car Market to Shrink for 2-3 Years
Global sales of light vehicles will decline year on year through at least 2021, predicts LMC Automotive at its annual outlook conference outside Detroit, Mich.
-
On Urban Transport, the Jeep Grand Wagoneer, Lamborghini and more
Why electric pods may be the future of urban transport, the amazing Jeep Grand Wagoneer, Lamborghini is a green pioneer, LMC on capacity utilization, an aluminum study gives the nod to. . .aluminum, and why McLaren is working with TUMI.
-
on the Genesis GV60 interior, EV sales in H1, Bentley Bentayga's wood work, Faurecia's advanced manufacturing & more
The strange glowing orb in the Genesis GV60. . .global EV sales in the first half. . .creating wood for the Bentayga interior. . .the importance of material handling at Faurecia. . .lux ATPs. . .fast Porsche. . .fast Lambo. . .the Avalon Hybrid. . .Silverado steel. . .