U.S. economic growth revised lower

By Hibah Yousuf, staff reporter


NEW YORK (CNNMoney.com) -- The economy grew at a slower pace in the first three months of this year than previously estimated, according to a government report Friday.

Gross domestic product, the broadest measure of the nation's economic activity, grew at an annual rate of 2.7% in the first three months of 2010, according to the Commerce Department, down from the previous reading of a 3% rise.

Economists expected the third reading of GDP during the first quarter to hold unrevised at 3%, according to a consensus of economist opinion from Briefing.com.

The Commerce Department said increased personal spending continued to stimulate the economy, but those advances were partly offset by "a larger decrease in state and local government spending."

The downward revision "leaves the current economic recovery looking even less impressive compared with previous ones," said Paul Dales of Capital Economics in a research note.

While Dales expects growth in the second quarter to pick up to an annual rate between 3% and 4%, he said that will not be sustainable.

"Growth will soon slow as the rebound in world trade fades, inventory rebuilding slows and the size of fiscal injection shrinks," he said. "Overall, the U.S. economy may be performing much better than those in Europe, but this is still the weakest and longest economic recovery in U.S. post-war history."

During the last three months of 2009, economic activity grew at an annual pace of 5.6%.  To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 16,919.59 80.85 0.48%
Nasdaq 4,527.51 19.20 0.43%
S&P 500 1,981.60 9.86 0.50%
Treasuries 2.41 0.00 0.00%
Data as of 9:02am ET
Company Price Change % Change
Intel Corp 34.34 -0.07 -0.20%
AT&T Inc 34.48 -0.17 -0.49%
Verizon Communicatio... 48.70 -0.08 -0.16%
Oracle Corp 41.41 0.77 1.89%
Regions Financial Co... 9.88 -0.07 -0.70%
Data as of Aug 19

Sections

Billionaire Richard Branson and 15 major business leaders from around the world are calling for an end to the Ukraine-Russia conflict. More

Small business owners say the economy is still their biggest challenge, which keeps them from expanding and hiring, according to a CNNMoney-Manta survey. More

Twitter is taking down accounts sharing images showing the murder of U.S. journalist James Foley by Islamic militants. More

Small business owners say the economy is still their biggest challenge, which keeps them from expanding and hiring, according to a CNNMoney-Manta survey. More

When hairdresser Mark Bustos isn't cutting the hair of fashion designers and real estate moguls, he's traveling around the world giving free haircuts to the homeless. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.