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Similarly, consumer spending has been revised downward, from an already low rate of 1% to 0.9%, its worst rate in nearly five years.
Growth in US Gross Domestic Product The quarter was revised downwards from 2.2% previously reported to 2%, which was below economists' expectations.
The correction announced today by the Ministry of Commerce has been influenced by a review of the reports on consumer spending, which account for nearly two-thirds of the world's largest economy. The 1% reported in the first estimate fell to 0.9%, its worst rate in almost five years.
Spending on services was also downgraded from 1.8% to 1.5%, while stocks and net exports, which initially showed slight growth, have now contracted.
The review could be a call for caution on the state of the US economy, at a time when the Federal Reserve is preparing to apply the third and fourth year hike in the reference interest rate.
While inflation shows signs of acceleration, with an increase of 2.2% in the first quarter, the entity will be cautious that the withdrawal of monetary stimulus does not hurt growth of the economy.
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