China has started reviewing the anti-dumping measures it imposed in 2006 on cate
By totalco.com, from chineseshipping.com.cn
Published: 2011.05.31
Print    Email

May 26--The U.S. economy expanded slightly in the first quarter, mainly reflecting government spending cuts, the Commerce Department reported Thursday.

U.S. real gross domestic product rose at an annual rate of 1.8 percent in the January to March quarter, according to the Commerce Department's second estimate.

Thursday's report confirmed the initial estimate issued last month and was weaker than the pace of 3.1 percent in the fourth quarter of 2010.

Consumer spending grew at just half the rate of the previous quarter. And a surge in imports widened the U.S. trade deficit.

Federal spending decreased 7.9 percent in the first quarter, compared with a decrease of 0.3 percent in the fourth. Local government spending decreased 3.2 percent, compared with a decrease of 2.6 percent.

From January to March, the U.S. exported more goods and services to foreign buyers, but its contribution to GDP was offset by the increase of imports.

Real exports of goods and services grew at a 9.2-percent pace, higher than a 8.6 percent growth in the fourth quarter in 2010. Imports, however, increased 7.5 percent in contrast to a decrease of 12.6 percent in the October-December quarter.

Consumer spending, which accounts for roughly 70 percent of overall economic activity, increased at just half the rate of the previous quarter. Imports, which are a subtraction in the calculation of GDP, increased.

The housing sector remained weak. Nonresidential fixed investment increased 3.4 percent in the first quarter, lower than the 7.7 percent advance in the fourth quarter. Residential fixed investment decreased 3.3 percent, in contrast to an increase of 3.3 percent.

In the latest estimate, the Federal Reserve lowered its growth estimate for the whole year to 3.1 to 3.3 percent, from its January projection of 3.4 to 3.9 percent.

Many economists believe the economy is growing only slightly better in the current April-June quarter. Consumers remain squeezed by relatively high gas prices near 4 U.S. dollars a gallon (1 U.S. dollar per liter) and renewed threats from Europe's debt crisis.

(Source：Xinhua)

View Comments(0)