GDP
Economic growth slows in first quarterPosted by RJ and Makay on Apr 27, 2012 |
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U.S. economic output grew at an annual rate of 2.2% in the first quarter of this year, down from the prior quarter’s growth rate of 3% but still at a level that has many economists forecasting a “sustainable” recovery. From the second half of 2009 till 2011, the economy grew at a slow pace. 2011 saw an acceleration of growth. Economists had ratcheted down their growth expectations last month amid a sharp drop in new durable goods orders and weakened job growth.
Retail sales rose 0.8% in March as consumers increased their spending on a wide range of goods and services for the third straight month, the Commerce Department reported today. The retail sales increase easily beat economists’ forecasts of 0.4%. Consumer spending accounts for 70% of the nation’s economy, so experts are likely to revise upward their forecasts for first quarter gross domestic product (GDP).
American chief executives had a brightened perspective on the economy in the first quarter of 2012, and more of them plan to ramp up hiring and make more capital equipment investments, according to a recent Business Roundtable survey. 42% of executives are planning to add additional staff, and 48% expect to boost spending. Both numbers are a 16-point improvement from the prior quarter. 16% expect to reduce staff in the next six months.
