US GDP growth revised up to 1.9pc

WASHINGTON: US economic growth in the first quarter was revised up by a tenth of a point to a 1.9 percent annual pace, the government said in its final estimate of output.

The Commerce Department's slight upward revision in gross domestic product (GDP) from the prior estimate of 1.8 percent growth was just above analyst expectations for no change in the figure.

Still, the January-March growth rate confirms a sharp deceleration of the world's largest economy from a 3.1 percent pace in the fourth quarter of 2010.

The department's third estimate for GDP reflected a downward revision to imports and an upward revision to inventory investment, which were offset by downward revisions to exports, to housing and state and local government spending.

Consumer spending remained the key driver of economic activity, rising at a 2.2 percent pace and contributing 1.52 percentage points to growth.

Business investment and inventory building also contributed to growth, but government and housing spending pulled down the pace of expansion.

Analysts expect some improvement in the second quarter which began in April but not enough to make a major change in the unemployment rate, which was 9.1 percent in May.

Copyright AFP (Agence France-Presse), 2011