GDP Figures Revised Upward
The Commerce Department revised their estimate’s on GDP numbers for the first quarter in a report released today.
The 0.9 percent gain at an annual pace in gross domestic product compares with an advance estimate of 0.6 percent, the Commerce Department said today in Washington. Fourth-quarter growth was 0.6 percent. Separate figures today showed the number of Americans continuing to receive jobless benefits rose to a four-year high this month.
Investors took that as a positive sign that the economy is remaining resilient despite the ongoing problems in the housing and credit markets. Many economists have been predicting a recession for the U.S. economy and while growth has slowed considerably, it still remains in positive territory.
The unexpected rise in GDP has been attributed to the rapid growth of U.S. exports which is benefiting quite nicely from the decline of the dollar. While the U.S. is still running a trade deficit, it’s has fallen to lowest level in six years.
Americans have also cut back on their consumption of imports, the prices of which have risen sharply over the past year. While domestic purchases have increased, consumer spending has slowed which has dragged down economic growth.
If unemployment figures can remain stable for the upcoming quarters it may be possible for the economy to stay out of a recession.
