From the FINANCIAL TIMES:
The US economy grew a disappointing rate of 2.2 per cent in the first quarter of 2012 as inventories piled up and the federal government cut spending.
The annualised growth rate for gross domestic product came in below market expectations of 2.7 per cent and compares with 3 per cent growth in the fourth quarter of last year.
Consumption was robust, growing at an annualised pace of 2.9 per cent and adding 2 percentage points to the growth rate. Real disposable income rose by only 0.4 per cent, however, suggesting consumers are saving less money. The savings rate fell to 3.9 per cent from 4.5 per cent in the previous quarter.
The weak performance did not, however, break a pattern of steady if mediocre expansion in the US, as consumption and investment grow too slowly to make up for cuts in federal spending.
“The US economy remains a bright light in the global economy, although the light is hardly blinding and also showing some signs of fading,” said Chris Williamson, chief economist at Markit in London…
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