According to the data from Commerce department, Us economy grew at an annual rate of 1.8 percent in the first quarter of 2011 from Jan-March. Weak growth of the US economy mainly contributed by surging gasoline prices and sharp spending cuts from the government. Consumer spending grew only half the rate than that of previous quarter, below estimated.
That was the same as the government's first estimate a month ago. Consumer spending grew at just half the rate of the previous quarter. And a surge in imports widened the U.S. trade deficit.
Many economists believe the economy is growing only slightly better in the current April-June quarter. Consumers remain squeezed by gas prices near $4 a gallon and renewed threats from Europe's debt crisis.
( Source: Reuters )
( Source: Reuters )
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