US government's spending cuts curb growth
Nikhil Kumar is The Independent's New York correspondent. He was formerly assistant editor on the foreign desk and has also done a variety of jobs on the city desk, where he wrote about markets, commodities and other business and economics topics.
Friday 31 May 2013
The US economy did not expand as fast as initially thought in the first three months of the year, a new report showed yesterday, as Washington-mandated belt-tightening hit government spending.
Revised figures from the Commerce Department showed that US GDP during the first three months of the year expanded at 2.4 per cent, against an initial estimate of 2.5 per cent.
The report showed government spending declined more than originally estimated over the period, easing by 4.9 per cent, compared with the first reading of 4.1 per cent. More encouragingly, however, consumer spending rose by 3.4 per cent.
A separate report, meanwhile, showed the number of Americans filing new claims for unemployment benefits rose by 10,000 to a seasonally adjusted rate of 354,000 in the week to 25 May. That was the third time the figures had climbed in four weeks, triggering some caution about the state of the US labour market.
The data is likely to be scrutinised closely by the US Federal Reserve as it considers when to begin tapering off its extraordinary stimulus measures. Currently, the Fed is buying $85bn (£56bn) worth of mortgage and government bonds every month to support the economy.
The magicians using online collaboration to push boundaries
Jennifer Lawrence attacks mass media again over body image
Jennifer Lawrence: 'It should be illegal to call someone fat on TV'
Sun will 'flip upside down' within weeks, says Nasa
Ian Watkins: Police probed over earlier allegations as paedophile Lostprophets singer sentenced to 35 years for child sex offences
DNA from a 50,000 year old toe shows Neanderthals were highly inbred
Devyani Khobragade: India-US row escalates over arrest of diplomat in New York
- 1 America's 'virgin births'? One in 200 mothers 'became pregnant without having sex'
- 2 Sun will 'flip upside down' within weeks, says Nasa
- 4 Christmas comes early: Justin Bieber is 'retiring from music'
- 5 Children evacuated from swimming pool after prosthetic leg mistaken for paedophile
- < Previous
- Next >
iJobs Money & Business
£500 - £550 per day: Cornwallis Elt : Business Analyst Target Operating Mod...
£500 - £680 per day: Harrington Starr: Murex Business Analyst - 1000 CHF per d...
£60000 - £75000 per annum + Bonus and Benefits: Harrington Starr: A leading au...
£25000 - £32000 per annum: Harrington Starr: Junior Business Analyst - Banking...