According to the data released from the Commerce Department, the data shown prove that the U.S economy grew an annual rate of 2.4% in the first three months of the year.
On Thursday, The department’s Bureau of Economic Analysis said that the figures were slightly slower than the 2.5% rate predicted for the quarter to 24%. Although the consumer spending were stronger than expected. Some of the other reports released on Thursday were the increased in the jobless claims in the past week and the positive signs of recovery in the housing market.
The reports showed that the economy was getting stronger regardless of its major financial drag according to Ellen Zentner, an analyst from Nomura Securities International. “The GDP data continue to paint the picture of an economy with strengthening fundamentals that is facing significant fiscal drag,” she said.
The Organisation for Economic Co-operation and Development (OECD) lowered its predictions for the global growth to 3.1% this year and 4% in 2014. Major of the U.S. trading partners are predicted to remain in recession for the rest of the year.
The reports show that the consumers might have been encouraged by the decrease of the unemployment rate. Over 200,000 jobs have been added to the jobs market.
The government’s spending fell to a 4.9% annual rate compared to the initial predication of 4.1% .Businesses bought less and growing at a slower pace. Analysts are predicting a slower growth in the next three months.