The Financial Express

US economy grows faster than expected

| Updated: May 01, 2019 16:32:48

US economy grows 3.2pc in first quarter

The US economy grew much faster than expected in the first quarter (Q1) of the year, helped by a jump in exports and by firms building up stocks of goods.

The economy expanded at an annualised pace of 3.2 per cent in the January-to-March period, well above analysts' forecasts.

The first largest economy of the world has accelerated since the previous quarter, when it grew at a pace of 2.2 percent.

However, some analysts warned growth had been boosted by one-off factors, and could slow in the months ahead, reports BBC.

The growth figures - which are subject to revision in the months ahead - appeared to dispel any fears of an economic slowdown.

"The Trump economy has repeatedly defied the sceptics who predicted an economic downturn and has restored America's position in the world as a consistent source of economic growth," US Secretary of Commerce Wilbur Ross said.

Trade helped to boost growth in the first quarter, as exports rose while imports fell. Companies also built up inventories of goods at the fastest rate since the second quarter of 2015.

However, consumer spending, which drives about two-thirds of economic activity in the US, grew by only 1.2 per cent in the Q1, down from a rate of 2.5 per cent previously.

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