Sunday, March 31, 2013
The United States economy grew at a 0.4% annual rate in the last three months of 2012 according to statistics released on Thursday by the United States Department of Commerce (USDOC). The revised figures are better than 0.1% previously estimated.
Per the report, the increased estimate of economic growth is partly due to an increased estimate of plant and equipment investment, however a cut in defense and government spending led to a loss in output.
The increased estimate comes after a hike in taxes at the beginning of this year and $85 billion being withdrawn from government spending at the beginning of March. Economists are predicting the first quarter of 2013 (January–March) will have an annual growth rate about 2.5%.
A statement released by the USDOC said: “While non-residential fixed investment is higher than previously estimated, the revision to GDP has not changed the general picture of the economy”.