facebook
twitter
search
search
X
Breaking News: Convicted Boston Marathon bomber Tsarnaev will seek a new trial

Confirmed: Economic growth modest

June 28, 2012 at 11:08 AM

WASHINGTON, June 28 (UPI) -- The U.S. economy expanded by a modest 1.9 percent on an annual basis in the first quarter of the year, the Commerce Department confirmed Thursday.

The advance, which follows 3 percent growth of the fourth quarter of 2011, was confirmed in the final estimate out of three released by the department.

Economists had not predicted any changes in the third estimate. However, economists expected a 2.1 percent rise from the fourth quarter in personal consumer expenditures. The Commerce Department said consumer spending rose 2.3 percent quarter to quarter.

The price index also beat expectations with prices jumping 2.6 percent in the quarter after rising 1.1 percent in the fourth quarter. Excluding the volatile categories of food and energy, the price index for gross domestic purchases rose 2.4 percent in the quarter, up from 1.2 percent October through December.

The report said corporate profits grew to $1.645 trillion on an annualized basis, a downward revision from the previous report, which set profits at $1.669 trillion.

Like Us on Facebook for more stories from UPI.com  
Related UPI Stories
Latest Headlines
Top Stories
B-52 bombers demo long reach of U.S. air power
Reddit CEO Ellen Pao offers to improve communication in wake of firing scandal
Report: Brazil's Petrobras wading dark waters
Oil markets hammered by Greece, Iran and China
Army orders tactical trucks from Oshkosh