U.S. economy shows growth

WASHINGTON, June 26 (UPI) -- Final figures on the first quarter 2008 gross domestic product released Thursday indicate the U.S. economy hasn't fallen into a recession.

The GDP advanced in step with expectations at a 1 percent growth rate in the first quarter, the Bureau of Economic Analysis said. The increase shows a modest jump from the fourth quarter of 2007, when the GDP increased by 0.6 percent.

The final figure is one tick more than preliminary figures, which put first quarter growth at 0.9 percent.

A recession is commonly defined as a period of two consecutive quarters in which the economy shrinks.

The BEA said motor vehicle sales did shrink in the first quarter, down 0.48 percentage points after a decline of 0.86 percentage points in the fourth quarter.

Personal consumption, which fuels two-thirds of the economy, grew by 1.1 percent in the first quarter, down from a 2.3 percent increase in the fourth quarter. Increases were noted in exports of goods and services -- up 6.5 percent.

The prices index also rose in the first quarter, up 3.6 percent for domestic purchases, the report said.