US econ­omy grows a mod­est 1.2pc

The Myanmar Times - - International Business -

THE US econ­omy grew more slowly than ex­pected in the sec­ond quar­ter of 2016, ris­ing a mod­est 1.2 per­cent.

The Com­merce Depart­ment also re­vised first-quar­ter growth es­ti­mates for gross do­mes­tic prod­uct down­ward to 0.8pc from 1.1pc, re­flect­ing re­sults in res­i­den­tial in­vest­ment, pri­vate in­ven­to­ries and ex­ports that were poorer than pre­vi­ously re­ported.

The sec­ond-quar­ter re­sults were well be­low an­a­lysts’ ex­pec­ta­tions of 2.6pc growth and could tem­per the cau­tious op­ti­mism ex­pressed by the US Fed­eral Re­serve.

The Fed had left rates un­touched but ac­knowl­edged a some­what rosier eco­nomic pic­ture, leav­ing open the pos­si­bil­ity of rate in­creases later in 2016 should con­di­tions im­prove.

The re­sults come in the mid­dle of a hotly con­tested pres­i­den­tial elec­tion in which vot­ers’ eco­nomic prospects are a key is­sue.

Dis­pos­able per­sonal in­come rose 3.1pc to US$106.3 bil­lion, faster than the first quar­ter’s es­ti­mate of 2.5pc.

An­a­lyst ex­pec­ta­tions had been wrong­footed by weaker-than-ex­pected per­for­mance in busi­nesses’ fixed in­vest­ments and pri­vate do­mes­tic in­vest­ments. –

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