Growth in the US economy slows down

Have you April 2011 last updated the 13: 40 GMT GDP numbers economic growth slows 28 for the US economy in the first three months of the year DroppedUS in the first three months of the year 2011 to an annualized rate of 1.8%, a 0.4% increase quarterly accordingly.

In the previous quarter, point official figures compared with a revised annual growth rate of 3.1%.

U.S. GDP is expressed as an annualised or annual pace, which shows, mean which would the three months of activity, if to you for a year.

The figure is a first estimate and could be revised either up or down.

Economic growth was due to high energy prices hampered consumer spending have weakened.

Consumer spending dropped to 2.7% from 4% in the previous quarter.

Analysts said that although the GDP data disappointing not unexpectedly after the Federal Government delayed defense spending and severe winter weather, construction projects being slashed.

Consumption for crimping

"It is very much aligned with consensus." The underlying components were a little better than what I expected. The weather was the biggest factor. "It consumption and construction, damage", said Stephen Stanley Pierpont securities.

"Energy damage also consumption as well." "Higher gas prices budget took a bigger bite out of people's."

On Wednesday the Chairman of the Federal Reserve Ben Bernanke said that the struggling real estate market continue to charge the U.S. economic recovery.

He pointed out that building and commercial construction were home both "very weak" in the first quarter.

The Federal Reserve has its economic growth forecasts for this year, cut, citing weaker growth in the first quarter.

Mr Bernanke also said that he believed that the items would reduce to weaker economic growth throughout the year.

"Most of the factors that the slower growth in the first quarter tell us transitory his appear," he added.

The Fed now expected for 2011 to 3.1% to 3.3%.

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