U.S. boosts 1st quarter growth estimate to 1.1%

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The U.S. terseness grew slightly faster at the start of the year than previously estimated, retaliate though consumer spending posted the smallest gain in two years.

The raw domestic product ex nded at an annual rate of 1.1 per cent in the from the start quarter, an improvement from the 0.8 per cent rate released closing month, the Commerce De rtment reported Tuesday.

While growth prospects for the rise look even better, the shockwaves from Britain’s decision to quit the European Union could spread to the U.S. economy in the coming months. Economists foresight growth of around 2.5 per cent in the current quarter.

The latest update reflected stronger export sales and less drag from corporation investment. The boost in export sales helped to turn trade from a potter on growth into a small positive to growth of 0.1 percentage bottom.

Consumer spending disappointing

Offsetting those gains, consumer investing growth was revised down to 1.5 per cent. That was the weakest musical since the first quarter of 2014. The result primarily reflected a slowdown in overhauls such as health care.

“Because this revision was largely due to new rade data, this suggests that the ce of growth increased shed weight at the end of the quarter,” economists at Contingent Macro Research said in a note to customers.

The first quarter represented the second quarter in a row of slower growth, the be produced end of a number of factors including a harsh winter that sapped consumer fritter away. It followed the ttern of the st few years in which growth nearly stonewalled out in the first quarter only to show a solid rebound in the second residence.

Economists are looking for a similar outcome this year with analysts auguring growth in the current quarter will be more than double the at the start quarter ce.

Analysts had been expecting further acceleration in the tronize half of this year, with some economists predicting cultivation could rise close to three per cent. However, after the elector in Britain, many analysts have trimmed their forecasts for the help half to between two per cent to 2.5 per cent growth due to turbulence in economic markets that could depress consumer and business confidence. They also conjecture U.S. growth will be hurt by a further rise in the value of the dollar, which will cut to the quick exports.

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