US eco­nomic growth es­ti­mate cut to 1.1%

The Myanmar Times - - International Business -

THE Com­merce De­part­ment has slightly cut its es­ti­mate of US eco­nomic growth in the sec­ond quar­ter to 1.1 per­cent, un­der­scor­ing the sur­prise weak­ness in busi­ness ac­tiv­ity dur­ing the pe­riod.

The 0.1 per­cent­age point cut to the ini­tial es­ti­mate of the an­nual ex­pan­sion rate came on the back of more com­plete data that showed lower state and lo­cal gov­ern­ment spend­ing and higher im­ports than ini­tially es­ti­mated.

But in an en­cour­ag­ing sign for growth in the cur­rent quar­ter, personal ex­pen­di­tures and busi­ness in­vest­ment were both re­vised higher.

But the re­vi­sions were small, the Com­merce De­part­ment said, adding that “the gen­eral pic­ture of eco­nomic growth re­mains the same”.

In the same re­port, the de­part­ment said that US cor­po­rate prof­its fell by US$24.1 bil­lion in the sec­ond quar­ter af­ter a $66 bil­lion in­crease in the first, and were down 4.9pc from a year ear­lier.

Banks and other fi­nan­cial in­sti­tu­tions saw sig­nif­i­cant gains in the quar­ter but those were off­set by a sharp fall in prof­its at non-fi­nan­cial cor­po­ra­tions.

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