US GDP Decreases 2.9 per cent in First Quarter Revision

Washington, June 25 (QNA) – The US economy’s output of goods and services decreased at an annual rate of 2.9 percent in the first quarter, nearly triple the hit that had originally been estimated, the US government said Wednesday.

The number marks the first negative growth reported in three years – since the first quarter of 2011. An earlier estimate put the decrease at only 1 per cent.

The drastic drop represented a 5.5-percentage-point plunge from the fourth quarter 2013 figures, when real GDP increased 2.6 percent, dpa reported.

In its final of three estimates of economic growth for the first quarter, the government’s Bureau of Economic Analysis said the figure had to be revised downward because the rate of personal consumption had been overestimated.

It also said exports had declined more drastically than originally thought.

The extremely hard winter in the US had braced economists for a drop, but other factors also explained the drop, such as drops in private inventory investment and state and local government spending.(QNA)

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