US economy grew 1.9% higher than previously thought

The US economy grew at an annualised rate of 1.9% in the first three months of the year, slightly faster than previously thought, official figures have shown.

This equates to a 0.5% quarterly rise. The last estimate by the Commerce Department showed growth of 1.8%.

This compares with an annualised rate of 3.1% in the final quarter of 2010.

High unemployment and a weak housing market are undermining the US economic recovery, analysts say.

Corporate profits, in particular, were blamed for the slowdown from the final quarter of last year.

US GDP is expressed as an annualised rate, which shows what the three months’ economic activity would mean if it carried on for a year.

Separate figures from the Commerce Department showed that orders for heavy manufactured goods rose by 1.9% in May, compared with a fall of 2.7% the previous month.

The rise was greater than analysts had expected.

April’s drop was due to supply issues following Japan’s earthquake and resulting tsunami in March, analysts said.

Source: BBC